SolarEdge Technologies Posts Upbeat Q2 Results; Shares Gain 10% After-Hours

Shares of the Israel-based provider of smart energy technology, SolarEdge Technologies, Inc. (SEDG), jumped over 10% in Monday’s extended trading session after the company delivered stronger-than-expected second-quarter results driven by strong revenue growth in its solar and non-solar businesses.

Adjusted earnings of $1.28 per share beat analysts’ expectations of $1.12 per share. The company reported earnings of $0.97 per share in the prior-year period.

Revenues jumped 45% year-over-year to $480.1 million and exceeded consensus estimates of $454.69 million. The increase in revenues reflected a surge in solar revenues, which increased 39% to $431.5 million.

Adjusted gross margin of 33.9% grew 150 bps compared to 32.4% reported in the prior-year quarter. (See SEDG stock charts on TipRanks)

Third Quarter Guidance Above Consensus Estimates

Based on strong Q2 results, the company provided guidance for the third quarter. The company forecasts revenues to be in the range of $520 – $540 million versus the consensus estimate of $504.7 million. Furthermore, the adjusted gross margin is expected to range between 32% and 34%.

Notably, solar revenues are forecast to be in the range of $460 – $480 million, leading to a gross margin from the segment in the range of 35% – 37%.

SolarEdge CEO Zvi Lando commented, “We are successfully navigating through the challenging supply chain environment while continuing to support our customers’ growth and expansion with new and existing products.”

J.P. Morgan analyst Mark Strouse recently increased the price target on SolarEdge Technologies from $337 to $373 (44.7% upside potential) and reiterated a Buy rating.

Overall, the stock has a Moderate Buy consensus rating based on 13 Buys, 5 Holds, and 1 Sell. The average SolarEdge Technologies price target of $318.65 implies 23.6% upside potential from current levels. Shares of SEDG have jumped 32% over the past year.