Finally getting around to my summary of SolarEdge’s earnings release a week ago. From the company website:
I know it’s not completely relevant here anymore as there aren’t many holders since the growth stalled a couple years ago, but for anyone that’s interested, the company is back to accelerating their growth over the last 3 quarters, which has caused a triple in the stock price in the last year. Here are the numbers (you can see the stall from 1Q16 through 1Q17, and then the resumption of growth):
REVS Q1 Q2 Q3 Q4
2014 $31 $45 $67 $73
2015 $86 $98 $115 $125
2016 $125 $125 $128 $112
2017 $115 $136 $167 $189
EPS Q1 Q2 Q3 Q4
2014 (0.19) (0.10) 0.09 0.12
2015 0.20 0.31 0.36 0.44
2016 0.51 0.44 0.46 0.32
2017 0.36 0.55 0.66 0.85
Revenue Growth (millions)
2016 Q4 TTM Revenue = 490
2017 Q4 TTM Revenue = 607
YOY TTM Revenue Growth = 23.9%
EPS Growth (non-GAAP)
2016 Q4 TTM Earnings = 1.73
2017 Q4 TTM Earnings = 2.42
YOY TTM EPS Growth = 39.9%
P/E (Check Current Price) = 48.35/2.42 = 20
The YOY revenue growth rates for the last 3 quarters (since the “stall”) have been:
With the midrange company guidance of their 1Q18 revs ($205M) coming in at a YOY growth rate of 78%.
The YOY EPS (non-GAAP) growth rates for the last 3 quarters (again, since the “stall”) have been:
With my estimate of their 1Q18 EPS ($0.94) coming in at a YOY growth rate of 161%. My estimate is higher than analysts for the current quarter, but SEDG has significantly beaten analyst estimates over the past year and I expect it to continue in the current quarter.
I of course don’t expect those growth rates to be able to continue for any extended period, they’ll obviously slow as they start coming up against harder comps a couple quarters from now, but they’re being rewarded for what they’re doing now.
The company of course has it’s risks, competition, being disrupted, slowing growth, etc, like any company, but if you’re looking for a GARP stock (growth at a reasonable price, even after the more than triple in the last year), you may want to check out SEDG.