Quarterly Figures: Solaredge in Q2 2023 With Record Sales - Share Price Collapses

Milpitas, USA - Solaredge Technologies has announced its financial results for the second quarter of 2023 (Q2 2023).

Although the inverter specialist increased sales to a new record level compared to the same quarter last year, it narrowly missed analysts' estimates. With its outlook for the third quarter, Solaredge also disappointed investors, with the stock plummeting in today's trading.

In Q2 2023 (April to June 2023), Solaredge posted record revenue of $991.3 million, up 36 percent year-over-year (Q2 2022: $727.8 million). In their median estimate, analysts had expected revenue of $994 million. At $947.4 million, revenues in the solar energy segment accounted for the majority of the total (Q2 2022: $687.6 million). Gross margin in the solar segment was 34.7 percent in Q2 2023, significantly higher than in the year-ago quarter (Q2 2022: 28.1 percent).

On a GAAP basis, net income was $119.5 million. Compared to the same quarter last year, this is a whopping 692 percent increase (Q2 2022: $15.1 million). GAAP diluted net income per share of $2.03 in Q2 2023 is thus significantly higher than in the year-ago quarter (Q2 2022: $0.26/share), but also lower than in the previous quarter (Q1 2023: $2.35/share).

Overall, the company sold a record volume of inverters with a total capacity of 4.3 gigawatts in Q2 2023 (Q2 2022: 2.52 GW).

For the third quarter (July - September 2023), Solaredge expects revenue to be in the range of $880 million to $920 million. Of this, solar is expected to account for between USD 850 million to USD 890 million. Solar gross margin is expected to be between 30 percent and 33 percent.

The shares of the RENIXX Group slumped yesterday in a generally weak stock market environment by 18.1 percent to a price of 178.90 euros (02.08.2023, closing price, Stuttgart Stock Exchange). Compared with the turn of the year, the share is thus currently trading at a minus of 31.2 percent.

Source: IWR Online, 03 Aug 2023