Shares of Israeli solar microelectronics firm SolarEdge (SEDG) have spiked this morning in pre-market trading after positive financial information for the second quarter, including $325 million in revenue.
During the early hours, SolarEdge values have hit $78.00 for an increase of over 20% from the previous close at $64 and change.
The increase brings SolarEdge equity to all-time highs, beating previous peaks of just over $66 in May of 2018.
Leadership cites strong demand and visibility as markers helping to deliver the 20% increase in revenue from the previous quarter.
News from Green Tech Media shows that part of SolarEdge’s success has to do with diminishing competition from Chinese firm Huawei, which changed course on U.S. operations after being targeted by the American White House.
Over concerns that Huawei might spy on Americans and American companies, the Trump administration asked American firms not to do business with Huawei in the short term.
This apparently left open more of a market for other international solar companies, a gap that firms like SolarEdge are filling.
However, Europe is also a major market for SolarEdge, and CEO Guy Sella told investors that Europe accounted for 48% of the reported revenue.
“I’m happy to report that we concluded our second quarter with very strong results,” Sella told investors on a call August 6, according to posted call transcripts at SeekingAlpha. “We are reporting record revenues for the quarter of $325 million, an increase of 20% from last quarter and about 43% from the same quarter last year. These revenues also include a record quarter in our solar business of approximately $307 million.”
Watch the market today to see how SolarEdge keeps its gains, and what that means for the long-term future of this in green energy stock.
