What happened
Shares of solar inverter and optimizer company SolarEdge Technologies Inc (SEDG +13.29%) jumped as much as 22.3% in trading Thursday after the company reported second-quarter results. As of 11:45 a.m. EDT, shares were still up 19.5% on the day.
So what
Revenue rose 9% from a year ago to $136.1 million, and net income jumped 59% to $22.5 million. Non-GAAP net income was also up 30% to $22.5 million, or $0.55 per share, compared to the $0.36 in earnings that analysts expected.
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Management said that growth in international markets drove results, and that cost reductions from new products like HD-Wave are helping drive margins higher. Next quarter, management said, revenue will be between $155 million and $165 million with gross margins of 33% to 35%, similar to second-quarter gross margin of 34.6%.
Now what
SolarEdge's expansion into new markets like commercial products and EV charging should help the company increase sales in 2017. And growing adoption of solar, particularly in commercial markets, will be a tailwind as well. With profits on the rise and market forces playing favorably to SolarEdge's strengths, the company has a bright future ahead.
