SOLAREDGE TECHNOLOGIES Reports Earnings Results for FY2022 Q4 as of December 31, 2022

Earnings Overview

SOLAREDGE TECHNOLOGIES ($NASDAQ:SEDG) reported an annual decrease of 49.1% in total revenue for the fourth quarter ending December 31 2022, with the figure amounting to USD 20.8 million. In contrast, their net income had a year-over-year increase of 61.4%, amounting to USD 890.7 million. These results were made public on February 13 2023.

Transcripts Simplified

Revenues from the solar segment, including sales of residential batteries, were also a record of $837 million, representing a 6% increase compared to the last quarter and a 66% increase compared to the same quarter last year. Solar revenues from the United States this quarter were $305.5 million, a 21% increase from the last quarter and a 19% increase from the same quarter last year, representing 36% of total solar revenues. Solar revenues from Europe were $473 million, a 1% decrease from the last quarter and 145% increase from the same quarter last year, representing 57% of total solar revenues. Rest of the World solar revenues were $58.5 million, a 5% decrease compared to the last quarter and a 12% increase from the last year, representing 7% of total solar revenues.

Additionally, the company addressed two financial issues that impacted their GAAP financials while having minimal to no effect on their non-GAAP results. These issues included the existence and valuation of intangible assets related to past acquisitions and tax expenses due to crossing the Israeli threshold of sales over 10 billion new Israeli Shekels.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Solaredge Technologies. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Solaredge Technologies. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Solaredge Technologies. More…

Key Ratios Snapshot

Some of the financial key ratios for Solaredge Technologies are shown below. More…

Share Price

On Monday, SOLAREDGE TECHNOLOGIES reported their fourth-quarter earnings results as of December 31, 2022. The stock opened at $303.7, up from the last closing price of $300.7 and closed at $310.7, a 3.3% increase. With their strong fourth-quarter results, Solaredge Technologies is poised to reach new heights in FY2023 and continue to grow their market share in the renewable energy sector. Live Quote…

Analysis

At GoodWhale, we have taken an in-depth look at the fundamentals of SOLAREDGE TECHNOLOGIES and been able to come to a conclusion about its suitability as an investment. We have assessed the financial and business aspects of the company and have given it a high risk rating. We have also detected two risk warnings in the balance sheet and cashflow statement, for which registered users can take a look. By reviewing all the aspects of the company, we believe that the investment of SOLAREDGE TECHNOLOGIES may not be suitable for all investors. More…

Peers

In the solar energy industry, there is intense competition between SolarEdge Technologies Inc and its main competitors United Renewable Energy Co Ltd, Folkup Development Inc, and Tainergy Tech Co Ltd. All four companies are striving to be the leading provider of solar energy solutions and each has its own unique strengths and weaknesses. SolarEdge Technologies Inc has a strong focus on innovation and has developed several industry-leading products, while United Renewable Energy Co Ltd has a large customer base and a strong financial position. Folkup Development Inc has a strong research and development team, while Tainergy Tech Co Ltd has a large manufacturing capacity.

– United Renewable Energy Co Ltd ($TWSE:3576)

As of 2022, United Renewable Energy Co Ltd has a market cap of 34.73B and a Return on Equity of 2.02%. The company is engaged in the business of developing, manufacturing and marketing of solar photovoltaic products. It also provides engineering, procurement and construction services for solar power projects.

– Folkup Development Inc ($OTCPK:FLDI)

Folkup Development Inc is a publicly traded company with a market capitalization of $49 million as of 2022. The company has a return on equity of 40.0%, indicating that it is a profitable company that is generate shareholder value. Folkup Development Inc is engaged in the business of real estate development and management. The company has a portfolio of properties in the United States and Canada.

– Tainergy Tech Co Ltd ($TWSE:4934)

Tainergy Tech Co Ltd is a Taiwanese company that manufactures lithium batteries and energy storage systems. The company has a market cap of 5.65 billion as of 2022 and a return on equity of -26.54%. Tainergy Tech Co Ltd manufactures lithium batteries and energy storage systems for a variety of applications, including electric vehicles, power tools, and consumer electronics. The company has a strong presence in the Asia-Pacific region and is expanding its operations globally.

Summary

SOLAREDGE TECHNOLOGIES reported strong fourth quarter financial results for the year ending December 31, 2022. The company reported total revenue of USD 20.8 million, a decrease of 49.1% year-over-year, but a net income of USD 890.7 million, an increase of 61.4% year-over-year. As a result, the stock price rose the same day.

For investors, SOLAREDGE TECHNOLOGIES appears to be recovering from a tough year with improved performance and income figures. Going forward, it will be interesting to see if the company can sustain its momentum in the near future.