SolarEdge Technologies, Inc. (NASDAQ: SEDG)
Wednesday after the market closed SolarEdge, the maker of solar power monitoring and harvesting solutions reported record financial results for its fiscal second quarter of 2016. The stock shot up more than 13% on the news in after-hours trading to a high of $31.11.
SolarEdge reported second quarter revenue of $124.8 million, a 70.3% year over year increase and a solid beat of consensus estimate of $119.9 million. For the quarter non-GAAP earnings of 44 cents per share, beat consensus estimate of 36 cents per share and climbed 267% year over year. The company also increased guidance for the third quarter with revenue now forecast at $121 to $125 million versus analysts forecast of $117.3 million. Investor’s Business Daily
“Execution of our strategy and related business plan has resulted in another successful quarter,” said Guy Sella, Founder, Chairman and CEO of SolarEdge. “In addition to our revenue growth and increased profitability, this quarter we installed our first HD-wave inverter units and we commenced shipments of our StorEdge solution. We remain committed to introducing innovative technologies to continue to drive down the cost of and broaden the application of renewable energy technologies.” Yahoo Finance
SEDG Technical Analysis
SolarEdge began trading in March 2015 at $20 per share. It finished 2015 on a strong note closing up 41% at $28.17, but off its all-time high of $43. The stock broke out of a 6- month downtrend in early December when federal tax benefits were extended through 2016. Like the broader market, SEDG started this year trading down but seemed to bottom in late January as the solar sector began reporting strong results. Wednesday’s after-hours trading pushed the stock up through long time resistance near $29 and to its highest price in over five months. For a long trade SEDG needs get and remain above pre-market levels. If the stock gets through $31.11 on volume it has room to August resistance levels near $32.00 and $33.70. On bearish trading, I will watch volume and price action near after-hours support levels of $30.90, $30.50 and $29.50. On extended weakness, the gap close at $27.63 comes into play.
SolarEdge Company Profile
SolarEdge Technologies Inc (SolarEdge) is a provider of solar power harvesting and photovoltaic (PV) monitoring solutions. The Company’s portfolio of products includes power optimizers, PV inverters and a Web portal for module-level monitoring and fault detection. Its SolarEdge power optimizer is a DC/DC converter, which is connected by installers to each PV module or embedded by module manufacturers, replacing the solar junction box. Its SolarEdge DC-AC PV inverter works with the SolarEdge power optimizers. Its SolarEdge PV Monitoring Portal is a Web-based application that provides module-level, string-level and system-wide monitoring. The Company’s customers include providers of solar PV systems to residential and commercial end users, such as SolarCity, SunRun Inc. and Vivint Solar, Inc. Google Finance