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SolarEdge crushes Q4 estimates, remains Top Pick at Goldman and Cowen

Published 2023-02-14, 07:04 a/m
Updated 2023-02-14, 07:04 a/m
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

By Senad Karaahmetovic

SolarEdge (NASDAQ:SEDG) shares are trading lower in premarket Tuesday despite the company reporting better than expected Q4 results and 1Q23 guidance. It could be that investors were disappointed that the solar company only maintained its 2023 revenue growth guide of 20-30%.

For the fourth quarter, SolarEdge reported EPS of $2.86 to crush the analyst estimate of $1.54. Revenue for the quarter came in at $890.7 million, above the consensus of $878.9M. Revenue increased by 61% year-over-year although operating expenses surged to $266.2M.

For its first fiscal quarter, the company sees revenue at $930M (up or down $15M), beating the consensus of $918.5M.

“We are pleased with our fourth quarter results that conclude a challenging yet very successful year. The global economic and geopolitical events coupled with post pandemic dynamics created an unprecedented demand for solar energy in general and our products in particular,” said Zvi Lando, Chief Executive Officer of SolarEdge.

Goldman Sachs analysts said the company delivered “well above expectations” results as Europe continues to look “very healthy”.

Cowen analysts added:

“While management echoed a softening in the US residential market in the immediate term, the company's relative strength in European and commercial markets afford it the ability to better navigate the expected near-term headwinds Remains our top pick for 2023.”

SolarEdge shares are down about 5% in premarket Tuesday.

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