Solaredge Technologies Inc, SunPower Corporation Shares Move Lower On Earnings

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SunPower and Solaredge Technologies released their latest earnings reports after closing bell tonight. SunPower posted adjusted earnings of 67 cents per share on $729.3 million in GAAP revenue; analysts were looking for earnings per share of 41 cents and $789 million in revenue. In the same quarter last year, the company reported $380.2 million in revenue and 13 cents per share in earnings.

SolarEdge posted non-GAAP net earnings of 46 cents per share on $128.5 million in sales, marking a 12% year over year increase. Those numbers compare to the consensus estimates of 44 cents per share in earnings and $132.3 million in revenue. In the same quarter last year, the company reported non-GAAP earnings of 36 cents per share.

SunPower’s losses narrow

SunPower’s non-GAAP revenue rose to $770.1 million from $441.4 million last year. The company’s GAAP losses per share were 29 cents, an improvement from last year’s GAAP losses of 41 cents per share. The GAAP gross margin rose to 17.7%, while the non-GAAP gross margin improved to 20%. Adjusted EBITDA rose to $148.2 million from $54.2 million last year. SunPower deployed 389 megawatts during the third quarter, compared to 293 megawatts last year.

SunPower expects fourth quarter revenue to come in between $900 million and $1.1 billion, which is far shy of the consensus at $1.37 billion. The company projects full-year revenue of $2.43 billion to $2.63 billion, compared to the consensus of $2.99 billion. It expects to deploy between 235 and 265 megawatts’ worth of projects during the fourth quarter.

After plunging 14.17% during regular trading hours on Wednesday due to Donald Trump’s winning the presidency, SunPower shares edged lower by less than 1% in after-hours trades to $6.28.

SolarEdge Technologies shares in freefall again

SolarEdge’s GAAP net income was $15.6 million or 35 cents per share, compared to $14.4 million or 32 cents per share last year, while its GAAP gross margin was 32.6%, which was an increase from 29.1% in the same quarter last year.  The company shipped 466 megawatts’ worth of inverters during the quarter.

“The solar market is facing challenging times,” said SolarEdge Founder, Chairman and Chief Executive Guy Sella in a statement. “Despite this, our financial parameters continue to be strong and we are confident in our strategy. We are focused on maintaining and growing our market share by adjusting our plans to the changing environment and continuing to invest in R&D for new innovative products and diligent cost reduction, while improving operational efficiency and increasing geographic diversification.”

SolarEdge Technologies expects revenue for the second quarter of fiscal 2017 to be between $110 and $120 million, coming up far short of the consensus of $136.9 million. The company projects gross margins to be between 30% and 32% for the quarter.

Shares of SolarEdge closed the regular trading day down 5.41% at $14 and continued to plunge in after-hours trades, falling another 7.18% to $13.

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