What happened 

Shares of SolarEdge Technologies Inc. (NASDAQ:SEDG) jumped as much as 23.2% in trading Thursday after the solar power optimizer manufacturer reported fourth-quarter results. The stock continued to hold gains throughout the day and was up 20.3% at 12:20 p.m. EST. 

So what

Revenue was up 14% to $189.3 million in the quarter and net income more than doubled to $19.5 million, or $0.42 per share. On an adjusted basis, earnings were $41.5 million, or $0.85 per share.

Solar panels on a residential rooftop under blue skies

Image source: Getty Images.

The results easily topped expectations with analysts only anticipating $179.8 million in revenue and $0.63 per share in adjusted earnings. What's most remarkable is that SolarEdge continued to grow even as the U.S. residential solar market struggled and a cloud hung over the industry due to solar tariffs.  

Now what

SolarEdge continues to expand its presence in residential solar, space where it's staked out a rarely profitable business. Management also expects to grow revenue to $200 million to $210 million in the first quarter with gross margins remaining between 36% and 38%. That should drive another highly profitable quarter and could keep the stock charging higher in 2018. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.