Shares of solar inverter and optimizer company SolarEdge Technologies Inc (NASDAQ:SEDG) 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.
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.
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%.
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.