SolarEdge Technologies, Inc. (NASDAQ: SEDG)
On Wednesday evening, SolarEdge Technologies, a leader in technology and products that harness and convert solar energy into commercially usable power, reported record financials results for its fiscal first quarter ended September 2015.
SEDG Earnings and Outlook
The company reported record revenue of $115.1 million, a 71.8% year-over-year increase, and GAAP net income of $14.4 million a record-breaking increase over the $2.5 million earned in the first quarter of fiscal 2014. GAAP gross margin of 29.1% also improved 39% year-over-year. Business Wire
“We are very satisfied with another strong quarter of record revenues and improved gross margins,” said Guy Sella, Founder, Chairman and CEO of SolarEdge. “In addition to our very positive financial results, this quarter we introduced our new HD Wave inverter topology, demonstrating our technological leadership in the market. We are confident that our global presence and expanded product offering position us well for continued growth.” Yahoo Finance
SEDG Technical Analysis
After selling to lows of $16.62 during the day Wednesday, the stock surged after-hours and again during Thursday’s pre-market trading, but on very thin volume. On Thursday, the stock opened at $20.01, essentially filling the gap down from just one week ago. The stock surged 32% during the day on 5.6 times average volume, topping out at $22.74 before closing the day at $22.01. The closing price is significant in two ways. It has acted as both support and resistance often during the past two plus months, and it sits just below the downtrend line that began on June 22, when SEDG reached all-time highs of $43 per share.
For a long, I want to see the stock hold above $22 and see buyers come in above this level. If the five-month downtrend can’t be reversed on such strong Q1 performance, I am not interested. If SEDG does move higher there could be some resistance around $22.50, $22.74 and the 50-day moving average at $23.76. Beyond this price indicates that bulls are reversing the trend. In the other direction, the fact that SEDG sold off 50 cents in the final 30 minutes of trading on Thursday is worth noting. There is support near $21.67, $21.10 and $20.75. A volume breach of any of these levels could provide a quick short scalp. A continued move below the $20.01 puts the sellers in control. As always any of these levels can be traded for continuation or reversal based on what the tape and volume reveal.
SolarEdge Technologies, Inc. Company Profile
SolarEdge Technologies Inc was founded in 2006. The Company and its subsidiaries design, develop, and sell an intelligent inverter solution that maximizes power generation at the individual photovoltaic (“PV”) module level while lowering the cost of energy produced by the solar PV system and providing comprehensive and advanced safety features. The Company’s products consist mainly of power optimizers which maximize energy throughput from each and every module through constant tracking of Maximum Power Point individually per module, inverters which invert direct current (DC) from the PV module to alternating current (AC) and a related cloud based monitoring platform, that collects and processes information from the power optimizers and inverters of a solar PV system to enable customers and system owners, as applicable, to monitor and manage the solar PV systems. The Company sells its products directly to solar installers and engineering, procurement and construction firms (“EPCs”) and indirectly to thousands of smaller solar installers through distributors and electrical equipment wholesalers. Benzinga