SolarEdge posts record Q3 op profit, revenue

Author: Ken Teegardin. Licence: Creative Commons, Attribution-ShareAlike 2.0 Generic.

Israel-based photovoltaic (PV) inverters supplier SolarEdge Technologies Inc (NASDAQ:SEDG) said on Monday that it has booked record operating profit and revenue in the third quarter (Q3) of 2022.

The company posted a 27% year-on-year increase in GAAP operating profit to USD 84.4 million (EUR 84.46m) on 59% higher revenue of USD 836.7 million. Revenues from the solar segment reached a record level of USD 788.6 million, up by 65% on the year.

“We are pleased with our third quarter results, setting new revenue and operating profit records. The results reflect extremely strong momentum in Europe where our revenues grew 90% compared to the same quarter last year,” commented CEO Zvi Lando.

Regardless of that, SolarEdge’s Q3 GAAP net profit dropped to USD 24.7 million from USD 53 million a year earlier.

More details about the company’s financial performance in the third quarter are available in the following table.

Figures in USD million, unless otherwise noted	Q3 2022	Q3 2021	Q2 2022
Revenues	836.7	526.4	727.8
-- from the solar segment	788.6	476.8	687.6
GAAP gross margin (%)	26.5	32.8	25.1
-- from the solar segment (%)	28.3	36.6	28.1
Non-GAAP gross margin (%)	27.3	34.0	26.7
GAAP operating profit (loss)	84.4	66.4	36.0
Non-GAAP operating profit (loss)	120.2	95.2	84.7
GAAP net profit (loss)	24.7	53.0	15.1
Non-GAAP net profit (loss)	54.1	82.1	56.7

In July-September 2022, SolarEdge shipped 2.7 GW of inverters and 320.7 MWh of batteries.

For the fourth quarter of the year, the company forecasts revenues in the range of USD 855 million-885 million, non-GAAP gross margin of 27% to 30%, non-GAAP operating profit of USD 115 million-135 million, revenues from the solar segment of USD 810 million-840 million, and gross margin from the solar segment of 28% to 31%.

(USD 1 = EUR 1.001)

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