What happened
Investors pushed the share price of SolarEdge Technologies (SEDG +13.47%), a smart energy-technology company, higher today after the company reported third-quarter sales that outpaced Wall Street's expectations and issued strong fourth-quarter revenue guidance.
SolarEdge's share price has jumped 17.1% as of 12:09 p.m. ET.
So what
SolarEdge reported sales of $836.7 million -- an impressive 59% increase from the year-ago quarter -- easily ahead of analysts' consensus estimate of $822.4 million.
The company's CEO, Zvi Lando, said in a press release that "the results reflect extremely strong momentum in Europe where our revenues grew 90% compared to the same quarter last year."
NASDAQ: SEDG
Key Data Points
SolarEdge's revenue momentum made it easy for investors to overlook that the company's non-GAAP (adjusted) earnings per share of $0.91 missed analysts' consensus estimate of $1.44 for the quarter.
Shareholders were also likely happy that management anticipates continued growth as SolarEdge expands its manufacturing footprint.
"We believe that the continued increase in manufacturing capacity in our existing manufacturing lines combined with our plans to establish a manufacturing footprint in the U.S. will allow us to capitalize on the strong demand we are experiencing globally," Lando said in prepared remarks.
Now what
SolarEdge's fourth-quarter guidance gave investors a jolt as well today, as management said sales in the quarter will be between $855 million and $885 million, compared to Wall Street's average estimate of $856.8 million.
The company's strong results and guidance also caused Northland analyst Gus Richard to upgrade SolarEdge's stock rating to market perform from his previous underperform rating, and he noted that the demand environment for the company's business is "spectacular."
All of this came on the same day that market indices were making significant gains, which likely helped boost overall investor optimism.
