A Solarpro employee installs a SolarEdge Technologies Inc. inverter at a residential property in Sydney, Australia, on Monday, May 17, 2021.
Brendon Thorne | Bloomberg | Getty Images
Shares of SolarEdge slipped as much as 8% during extended trading on Tuesday following the company’s third-quarter earnings results. SolarEdge posted record revenue for the period, but the number fell short of expectations and sent the stock tumbling.
The company makes specialized inverters — often referred to as the brains of a solar system – that are connected to each solar module, which increases the system’s energy output.
Here’s how the company did versus analysts’ expectations, as compiled by Refinitiv:
Earnings: $1.45 per share, adjustedRevenue: $526 million vs $528 million expected
Wall Street analysts were expecting the company to earn $1.36 per share. It was not immediately clear whether the reported number is comparable to estimates.
The third-quarter results compare with adjusted EPS of $1.28 per share on revenue of $480 million in Q2, and $1.21 on revenue of $338 million in the year-ago quarter.
Revenue from the company’s solar segment jumped 11% quarter over quarter to $476.8 million, and was up 53% year over year.
SolarEdge said it expects fourth-quarter revenue to be between $530 million and $560 million. Wall Street analysts were looking for $554 million, according to estimates compiled by StreetAccount.
The company continues to be hit by supply chain bottlenecks, and said it exited the latest quarter with a “record backlog” for the fourth quarter of 2021 and into the first quarter of next year. The comments come after management said during the second quarter conference call that some supply chain pressures had started to ease.
“We are pleased with our record revenues in the third quarter amid the unprecedented global logistics and supply chain challenges,” CEO Zvi Lando said in a statement following SolarEdge’s third-quarter results. He added that a manufacturing facility in Vietnam was shut for 12 weeks during the period due to Covid-related issues.