Israel-based provider of power optimizer, solar inverter, and monitoring solutions SolarEdge reported its second quarter earnings this week, revealing record revenues and strong overall growth, that seems to have nevertheless left investors unimpressed.
SolarEdge published its second quarter earnings on Wednesday, revealing record revenues for the quarter of $136.1 million, and GAAP net income of $22.5 million (non-GAAP net income for the quarter was $25.8 million). This is well up on the $115.1 million in revenues recorded in the first quarter of 2017, and up 9% on the previous record quarter back in the second quarter of 2016. Earnings per share for the quarter were $0.50, up from $0.32 in the previous quarter.
For the second quarter, SolarEdge shipped 563 MW (megawatts) worth of inverters for the quarter, up from the 455 MW shipped in the first quarter and the 416 MW shipped a year ago.
“The second quarter of 2017 was a record quarter for us with record revenues, record non-GAAP profitability and record cash generation,” said Guy Sella, Founder, Chairman and CEO of SolarEdge. “Our sales in markets outside of the United States continued to grow this quarter further strengthening our diversified revenue base. Our continued cost reduction led by the HD-wave roll out allowed us to further increase profitability and cash flow generation. This quarter we also unveiled the next generation power optimizer, large capacity commercial inverter and announced the launch of the first PV inverter-integrated EV (electric vehicle) charger demonstrating our continued innovation and technological leadership.”
Looking forward, SolarEdge predicts that for the third quarter of 2017 it will be able to record revenues within the range of $155 million to $165 million and post gross margins in the range of 33% to 35% — no other guidance was offered.
However, despite the relative strength of the company’s second quarter, investors were still less than impressed, with shares falling nearly 2% in the wake of SolarEdge’s earnings report. Within minutes of trading opening on Wednesday, the company’s share price began falling and only slightly rebounded by the end of trading. Considering the company’s expected revenues for the third quarter being in the range of 13% to 21% higher than this quarter, one must assume that investors are less concerned with future revenue and more concerned with increased earnings per share.
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:
I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...