NASDAQ$SEDG

SolarEdge Technologies · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

SolarEdge's Q2 2023 financial performance was marked by record revenues and operating income, driven by strong European performance, while navigating headwinds in the U.S. residential solar market.

SolarEdge Technologies reported record revenues of $991.3 million, a 36% increase year-over-year, and a GAAP EPS of $2.03. The company saw record GAAP operating income of $150.4 million and a record 4.3 Gigawatts of inverters shipped. While the U.S. residential solar market is facing challenges, SolarEdge is leveraging its global presence and multi-segment strengths to navigate these headwinds.

  • Record revenues of $991.3 million, up 36% year-over-year.
  • Record revenues from the solar segment reached $947.4 million, a 38% increase year-over-year.
  • GAAP operating income was a record $150.4 million, a 318% increase year-over-year.
  • 4.3 Gigawatts (AC) of inverters were shipped, setting a new record.

Headline financials

Total Revenue

$991M

Previous: $728M+36.2%
EPS (adj)

$2.62

Previous: $0.95+175.8%
Inverters Recognized

4.3B

Previous: 2.52+170634920534.9%
Capital Expenditures

-$84.1M

Previous: -$91.9M+8.5%
Free Cash Flow

$35.4M

Previous: -$76.8M+146.1%
Net Income

$120M

Previous: $15.1M+692.3%
Operating Income

$150M

Previous: $36M+317.5%
Gross Profit

$317M

Previous: $183M+73.7%
Cash & Equivalents

$558M

Previous: $746M-25.2%
Total Assets

$4.7B

Previous: $3.77B+24.5%
Stock-Based Comp

$39M

Previous: $37.1M+5.1%

Revenue & EPS history

SolarEdge · Revenue · Quarterly

$991M

Q2 2023+36.2%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company provided guidance for the third quarter ending September 30, 2023, with revenues expected to be in the range of $880 million to $920 million and revenues from the solar segment to be in the range of $850 million to $890 million.

Tailwinds

  • Revenues to be within the range of $880 million to $920 million
  • Non-GAAP gross margin expected to be within the range of 28% to 31%
  • Non-GAAP operating income to be within the range of $115 million to $135 million
  • Revenues from the solar segment to be within the range of $850 million to $890 million
  • Gross margin from the solar segment expected to be within the range of 30% to 33%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+3.5%

Avg return

Earnings day

+5.5%

Avg return

5 days after

+4.8%

Avg return

30 days after

58%

26 / 45 earnings

Positive

+31.2%

Q4 2019

Best reaction

-21.1%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.5%-6.3%+41.5%
Q4 2025-5.5%+6.1%+39.3%
Q3 2025+28.8%+42.6%-7.2%
Q1 2025+10.9%+53.6%+37.3%
Q4 2024+15.9%+9.0%+0.6%
Q3 2024-21.1%-27.5%-32.3%
Q2 2024-4.3%-10.3%-18.5%
Q1 2024-10.3%-11.1%-21.2%
Q4 2023-12.8%-20.8%-21.5%
Q3 2023-4.2%-5.5%+8.6%
Q2 2023-19.0%-24.4%-32.7%
Q1 2023+6.7%+10.6%+10.4%
Q4 2022+4.9%+1.4%+1.9%
Q3 2022+14.9%+31.9%+41.9%
Q2 2022-17.6%-12.0%-24.9%
Q1 2022+4.9%+0.6%+8.8%
Q4 2021+7.0%+3.5%+26.2%
Q3 2021-2.2%-4.7%-11.7%
Q2 2021+15.5%+13.8%+11.7%
Q1 2021-17.1%-16.4%-6.1%
Q4 2020+1.2%-2.7%-19.5%
Q3 2020-19.9%-7.8%+6.1%
Q2 2020+12.0%+20.8%+25.8%
Q1 2020+1.7%+14.0%+37.5%
Q4 2019+31.2%+25.1%-35.8%
Q3 2019-4.0%-2.6%+0.8%
Q2 2019+27.6%+30.9%+24.9%
Q1 2019+20.8%+19.0%+23.8%
Q4 2018-2.8%-6.8%-14.3%
Q3 2018-2.5%-2.9%+0.5%
Q2 2018-13.9%-16.5%-14.8%
Q1 2018+15.5%+22.1%-4.0%
Q4 2017+27.4%+27.8%+51.3%
Q3 2017+19.6%+15.6%+11.1%
Q2 2017+18.5%+21.7%+15.9%
Q1 2017+9.7%+10.0%+20.2%
Q4 2016-5.2%+3.1%-2.5%
Q3 2016-14.0%
Q2 2016+10.6%
Q1 2016+16.9%
Q4 2013-10.6%
Q4 2015-2.6%
Q3 2014+0.0%
Q4 2014+0.0%
Q3 2015+19.2%
Q3 2013

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