SolarEdge Technologies (SEDG) Misses Q1 EPS by 30c, Revenues Beat; Offers 2Q Revenue Guidance Below Consensus
SolarEdge Technologies (NASDAQ: SEDG) reported Q1 EPS of $0.95, $0.30 worse than the analyst estimate of $1.25. Revenue for the quarter came in at $431.2 million versus the consensus estimate of $420.35 million.
First Quarter 2020 Highlights
- Record revenues of $431.2 million
- Record revenues from solar products of $407.6 million
- GAAP gross margin of 32.5%
- GAAP gross margin from sale of solar products of 34.6%
- Non-GAAP gross margin from sale of solar products of 35.0%
- GAAP net income of $42.2 million
- Non-GAAP net income of $50.7 million
- GAAP net diluted earnings per share (“EPS”) of $0.81
- Non-GAAP net diluted EPS of $0.95
- Record 1.85 Gigawatts (AC) of inverters shipped
“The first quarter of 2020 was an exceptional one with record revenues of more than $430 million,” said Zvi Lando, CEO of SolarEdge. “Despite the challenges triggered by COVID-19 during the quarter, we were able to get products to our customers and satisfy demand. At present, despite many government enforced shut downs, our employees continue to work and operate our business, without any significant interruptions. We are proud of and thankful to our employees who are working relentlessly in this period and to our customers for their continued loyalty. We are confident that our financial strength, technological leadership and global presence will enable us to come out of this uniquely challenging period even stronger.”
GUIDANCE:
SolarEdge Technologies sees Q2 2020 revenue of $305-335 million, versus the consensus of $348.25 million.
The evolving impact of, and responses to, the COVID-19 pandemic on economies around the world, including all of the Company’s markets, is unprecedented and makes it difficult to predict with confidence its impact on the Company’s business for the next quarter and the rest of this year. Please note that the below guidance for next quarter includes the anticipated impact of the COVID-19 pandemic and related public health measures on the Company’s business, at the time of publication.
The Company also provides guidance for the second quarter ending June 30, 2020 as follows:
- Revenues to be within the range of $305 million to $335 million
- Gross margin expected to be within the range of 30% to 32%
- Revenues from solar products to be within the range of $285 million to $315 million
- Gross margin from sale of solar products expected to be within the range of 32% to 34%
For earnings history and earnings-related data on SolarEdge Technologies (SEDG) click here.