Growth of 60%: Israeli SolarEdge peaked after quarterly reports

Solar revenues grew by about 60%, compared to the corresponding quarter of $ 389 million Gross Profit (Non-GAAP) rate was 34.3% and in Solar field 37.8%

Israeli SolarEdge shares jumped more than 8% to an all-time high after Thursday's good quarterly results.

SolarEdge of Herzliya, which is engaged in the development and supply of a solar energy optimization and monitoring system, has expanded its operations through acquisitions in other areas not in the solar market. The company was first issued on NASDAQ in 2015 at $ 18 a share, and with the jump this evening the stock is approaching $ 143.

Solar revenue in the fourth quarter grew by about 60%, compared to the same quarter of $ 389 million, similar to the previous quarter. Thus, solar revenue was in the lower range of the company's forecast. SolarEdge reported strong growth in the US (61% of sales), both residential and commercial. Non-solar revenue posted $ 29 million, up from the previous quarter.

The gross margin (Non-GAAP) was 34.3% and in the solar sector 37.8%. The increase is due to the continued process of reducing costs that the company constantly carries out, but mainly from a decrease in the provision for liability. In the non-solar sector, gross profit declined from 28% to 5%.

The company's forecast for the next quarter reflects a further 60% growth in revenues of $ 425-440 million, compared with market forecasts for revenues of NIS 392 million, of which $ 405-415 million is solar.

The company does not currently expect revenue in the first half of the year, as the plant in China is working and expected to reach an 80-85% utilization rate soon, according to the conference call. Summit economists note that the company also had relatively high inventories earlier this year due to the Chinese New Year. "However," writes Summits, "profitability is expected when the company still has to use fast deliveries to deliver the products. Previously, it was mentioned that early deliveries could be reduced by early 2020 and that now seems to be rejected."

At the summits, the bottom line is that "the company continues to grow at a very high rate thanks to the quality of management, product development and the ability to offer advanced and good products at a relatively cheap price as well as the tremendous growth in the industry. Than before. "

At the summits, the target price per share increased from $ 95 to $ 150 per share, leaving the 'buy' recommendation per share. "The increase in prices is due to updating short-term and long-term growth forecasts as well as lowering the discount rate in view of the market's huge demand for the most growing industry in the energy industry," wrote Psagot.