Costs weigh on SolarEdge’s second-quarter earnings as revenue peaks

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Aug. 3 (Renewables Now) — Israel-based inverter supplier SolarEdge Technologies Inc (NASDAQ:SEDG) saw its second-quarter GAAP net income decline 67% on an annual basis, even as it posted record revenue, driven by strong demand in the solar photovoltaic (PV) segment.

The company posted a net profit of $15.1 million (€14.8 million), which declined both sequentially and in annual terms due to higher costs, its financial report revealed on Tuesday. . Driven by sales growth in Europe and the United States, SolarEdge saw a 59% increase in revenue from its solar segment, which was responsible for the bulk of its total revenue during the reporting period, for a total of $727.8 million.

General Manager Zvi Lando pointed out that the company is still struggling with supply chain issues.

More details on the financial performance of SolarEdge are given in the table.

Amounts in USD Q2 2022 Q2 2021
Revenue 727.8m 480.1m
— of the solar segment 687.6m 431.5m
GAAP gross margin (%) 25.1 32.5
Non-GAAP Gross Margin (%) 26.7 33.9
GAAP operating profit 36 55.6
Non-GAAP operating income 84.7 81.3
GAAP net income 15.1 45.1
Non-GAAP net income 56.7 72.5

Solar inverter shipments in April-June amounted to 2.5 GW.

In June, SolarEdge had $973.3 million in cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities, net of debt, compared to $979 million at the end of March.

Looking ahead, the Israeli company expects to achieve revenues of between $810 million and $840 million in the third quarter of 2022, with solar segment revenues estimated at $765 million to $795 million. The gross margin of the solar segment should be between 27% and 30%.

($1.0 = EUR 0.977)

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