SolarEdge Technologies Reports Q2 2024 Financial Results

authorIntellectia.AI2024-08-08
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SEDG.O
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SolarEdge Technologies Reports Q2 2024 Financial Results

SolarEdge Technologies, Inc. (NASDAQ: SEDG), a global leader in smart energy technology, reported its financial results for the second quarter ended June 30, 2024.

Key Financial Metrics

Metric Q2 2024 Q1 2024 Q2 2023 YOY Change QOQ Change Consensus Estimates
Total Revenue $265.4M $204.4M $991.3M -73% 30% $262.27M
GAAP EPS $-2.31 $-2.75 $2.03 N/A N/A $-1.58
Non-GAAP EPS $-1.79 $-1.90 $2.62 N/A N/A N/A
GAAP Net Income $-130.8M $-157.3M $119.5M N/A N/A N/A
Non-GAAP Net Income $-101.2M $-108.6M $157.4M N/A N/A N/A

Interpretation : SolarEdge Technologies demonstrated sequential revenue growth of 30%, from $204.4 million in Q1 2024 to $265.4 million in Q2 2024. However, year-over-year revenue is down substantially by 73%, indicating a challenging landscape compared to the same quarter last year. GAAP EPS improved sequentially but remained negative. The earnings fell below the Wall Street consensus.

Segment Revenue Performance

Segment Q2 2024 Q1 2024 Q2 2023 YOY Change QOQ Change Guidance
Solar $241.2M $190.1M $947.4M -75% 27% N/A
Total Revenue $265.4M $204.4M $991.3M -73% 30% $260M - $290M

Interpretation : Revenue from the solar segment exhibited a 27% sequential increase but was down 75% from the same period last year. The company met its provided guidance range for the second quarter.

Key Operational Data

Operational Metric Q2 2024
Inverters Shipped 873 Megawatts (AC)
Batteries for PV Applications 128 MWh

Officer Comments

Zvi Lando, CEO of SolarEdge, stated, “We are encouraged by our second quarter top line results which saw sequential revenue growth of 30% and an 18% growth in sell-through of our solar products by our distributor customers. While we expect undershipping to continue in the third quarter, we believe the momentum in our underlying business and the actions we are taking to gain market share and address new growth segments will enable a return to higher revenue levels once inventories are cleared in the first half of 2025."

Share Repurchase Program

In the second quarter of 2024, the company repurchased 247,468 shares of its common stock at an average price of $68.70 per share, totaling approximately $17 million.

Forward Guidance

For the third quarter ending September 30, 2024, SolarEdge expects: - Revenues between $260 million and $290 million. - Non-GAAP gross margin expected to range from negative 3% to positive 1%. - Non-GAAP operating expenses to be between $111 million and $116 million. - Revenues from the solar segment to range from $245 million to $280 million. - Solar segment gross margin within 0% to 4%.

Stock Price Movement

Following the earnings release, SolarEdge Technologies experienced a stock price decrease of approximately -1.30%.

Conclusion

SolarEdge Technologies faced a tough year-over-year comparison but showed significant quarter-over-quarter improvement. The company remains optimistic about future growth and inventory stabilization, supported by sequential gains in revenue and strategic actions.

For further details and the full earnings release, visit the SolarEdge investor relations website.

The report has been organized into a clear and concise format suitable for investors.

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