Solar power systems company SolarEdge (NASDAQ:SEDG) will be reporting earnings this Wednesday before market open. Here’s what to look for.
SolarEdge beat analysts’ revenue expectations last quarter, reporting revenues of $346.2 million, up 19.6% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
Is SolarEdge a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting SolarEdge’s revenue to decline 4% year on year, a reversal from the 30.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. SolarEdge rarely misses Wall Street’s revenue estimates.
Looking at SolarEdge’s peers in the renewable energy segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bloom Energy delivered year-on-year revenue growth of 138%, beating analysts’ expectations by 14.6%, and Nextpower reported revenues up 22.5%, topping estimates by 4%. Bloom Energy traded down 11.2% following the results while Nextpower was also down 2.7%.
Read our full analysis of Bloom Energy’s results here and Nextpower’s results here.
Investors in the renewable energy segment have had steady hands going into earnings, with share prices flat over the last month. SolarEdge is down 11.8% during the same time and is heading into earnings with an average analyst price target of $37.11 (compared to the current share price of $30.33).
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