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SolarEdge (SEDG) Set to Post Q2 Earnings: What's in the Offing?

Zacks Equity Research
Updated ·4-min read

SolarEdge Technologies, Inc. SEDG is slated to report second-quarter 2022 results on Aug 2 after the closing bell.

In the last reported quarter, the company delivered a negative earnings surprise of 6.25%. SEDG has a trailing four-quarter negative earnings surprise of 0.41%, on average.

Factors to Note

The strong shipments of power optimizers and inverters are anticipated to have contributed to SolarEdge Technologies’ second-quarter top line.

Additionally, the strong revenue growth in the United States and European countries is expected to have bolstered the overall revenues of the company. Moreover, the residential and commercial segments of European countries must have recorded significant growth as the company expects sales to further gain traction in the second quarter onward, buoyed by its strong product portfolio and strong presence in the region.

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On the product front, the perks of the strong demand for the SolarEdge residential battery globally are expected to have been reflected in the second-quarter top line. Additionally, other products, namely water heaters, meters and inverter-integrated EV chargers, are expected to have added impetus to its second-quarter revenues.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $726.3 million, suggesting growth of 51.3% from the year-ago quarter’s reported number.

From the cost perspective, higher logistic costs and tariffs and some component and raw material price increases are expected to have dampened the bottom line of SolarEdge Technologies. However, the price increase across its various product lines must have outweighed the negative cost impact and aidedits margins, thereby boosting earnings in the to-be-reported quarter.

Also, the shifting of the contract manufacturing facility to Mexico might have assisted the company in reducing its shipping costs and tariffs, thereby benefiting the bottom line of the company in the second quarter.

The Zacks Consensus Estimate for second-quarter earningsis pegged at $1.40 per share, indicating an improvement of 9.4% from the prior-yearreported figure.

SolarEdge Technologies, Inc. Price and EPS Surprise

SolarEdge Technologies, Inc. Price and EPS Surprise
SolarEdge Technologies, Inc. Price and EPS Surprise

SolarEdge Technologies, Inc. price-eps-surprise | SolarEdge Technologies, Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for SEDG this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

SolarEdge has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are three solar companies you may want to consider as they have the right combination of elements to post an earnings beat this season:

Sunnova Energy International Inc. NOVA currently has an Earnings ESP of +11.95% and a Zacks Rank #3. The Zacks Consensus Estimate for Sunnova’s second-quarter earnings implies a year-over-year improvement of 23.8% from the prior-year reported figure.

The Zacks Consensus Estimate for Sunnova’s second-quarter sales, pegged at $89.3 million, suggests a year-over-year improvement of 34.1% from the prior-year reported figure. NOVA delivered an earnings surprise of 21.05% in the last reported quarter.

Array Technologies, Inc. ARRY currently has an Earnings ESP of +5.88% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 4 cents per share.

The Zacks Consensus Estimate for Array’s second-quarter sales suggests year-over-year growth of 73.7% from the prior-year reported figure. ARRY has a four-quarter earnings surprise of 12.14%.

Sunrun RUN currently has an Earnings ESP of +35.36% and a Zacks Rank #2. The Zacks Consensus Estimate for Sunrun’s second-quarter sales suggests year-over-year growth of 20.9% from the prior-year reported figure.

In the last reported quarter, Sunrun delivered a negative earnings surprise of 500%. RUN has a four-quarter negative earnings surprise of 245%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Array Technologies, Inc. (ARRY) : Free Stock Analysis Report

SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report

Sunrun Inc. (RUN) : Free Stock Analysis Report

Sunnova Energy International Inc. (NOVA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research