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Earnings Preview: SolarEdge Technologies

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SolarEdge Technologies (NASDAQ:SEDG) announces its next round of earnings this Monday, May 03. Here is Benzinga's everything-that-matters guide for this Monday's Q1 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see SolarEdge Technologies reporting earnings of $0.99 per share on sales of $396.21 million. SolarEdge Technologies EPS in the same period a year ago totaled $0.95. Revenue was $431.22 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release.
When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Monday, earnings would be up 4.21%. Revenue would be down 8.12% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.86 0.81 0.69 1.25
EPS Actual 0.98 1.21 0.97 0.95
Revenue Estimate 356.25 M 341.88 M 319.42 M 420.35 M
Revenue Actual 358.11 M 338.10 M 331.85 M 431.22 M

eps graph

Stock Performance

For a full 12 months, the return has risen by 153.57%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. SolarEdge Technologies is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings