Shares of SolarEdge (SEDG 0.96%) rose 27.5% in February 2020, according to data from S&P Global Market Intelligence. The maker of power optimizers, inverters, and monitoring systems for solar power arrays crushed Wall Street's estimates in last month's fourth-quarter report, sending share prices more than 30% higher in the span of two days.
SolarEdge followed suit the next day, delivering fourth-quarter results far ahead of Wall Street's expectations. Your average analyst had been looking for earnings near $0.25 per share on sales in the neighborhood of $414 million. SolarEdge's earnings rose 161% to $1.65 per share while revenue increased by 59% to $418 million.
The company posted record unit and production capacity volumes in the fourth quarter thanks to a renewed global surge of construction in renewable energy infrastructure. SolarEdge also saw strong sales of inverters compatible with power storage systems and expanded testing of power control units for electrical power trains in light commercial vehicles.
It's no surprise to see SolarEdge's stock surge on fantastic financial reports from both the company itself and comparable sector rivals. The stock trades at 22 times forward earnings estimates, which looks quite affordable next to SolarEdge's torrential revenue growth.