SEDG New America Article

Snippets from IBD New America article…

Tax credit extension good for SEDG.

The credit was set to drop to 10% this year and later get phased out entirely for residential projects, threatening to suddenly stunt growth in the burgeoning solar energy market, analysts say. But lawmakers’ last-minute move extended the 30% rate through 2019, with a plan to bring it down modestly to 26% the following year and to 22% in 2021…

One hitch is that states like Nevada are eliminating solar credits. That’s forced many of SolarEdge’s customers — installers of residential systems — to flee that market…

SolarEdge produces optimizers and inverters to turn solar energy into electricity. Its customers include the two largest U.S. solar residential installers, SolarCity (SCTY) and Vivint Solar (VSLR). SolarEdge also partners with Tesla Motors (TSLA) on an in-home stationary battery, a device used to store solar energy for later use in the electric-car maker’s vehicles. The Tesla deal was forged last April…

For its fiscal second quarter ended Dec. 31, SolarEdge posted company-record revenue of $124.8 million, up 70% from a year earlier. Excluding special items, it reported earnings per share of 44 cents, up nearly 270% and well past analyst views of 36 cents, according to Thomson Reuters.

The U.S. market has proven critical to SolarEdge’s growth. In the latest completed quarter, the company generated 74% of its sales in the U.S…


SolarEdge predicts it will rake in $121 million to $125 million in revenue during the current quarter. At the midpoint, sales would surpass year-earlier results by more than 40%.

The company “has plenty of runway — especially with the extended (tax credit),” Canaccord Genuity analyst Jed Dorsheimer said in a February report.

SolarEdge is ranked No. 1 in IBD’s Energy-Solar industry group. It is followed by No. 2 First Solar (FSLR)…

Analyst Barati of IHS predicted photovoltaic installations in residential and commercial projects — at the core of SolarEdge’s business — will grow 60% in the U.S. this year, reaching a record level…

The company also has entered the energy storage arena — both with the Tesla partnership and with new products of its own. Analysts say this should help it expand its revenue streams in coming years…

oil has dropped from more than $100 a barrel to under $30 in some cases, removing concerns about energy costs, Matousek said. He said, though, that the excess supply that brought down oil prices will come back in line with demand, and prices will almost certainly rebound.

“So longer-term, higher oil prices will probably lead more people back to alternatives like solar,” Matousek said. “Rising oil is probably several quarters away, and it may take a few years to really impact people’s psyches, but down the road, when that [solar] tax credit starts to get scaled down, even greater attention on alternative energy could help offset that.”

Pretty darn good “ratings”. We know our 1YEPG numbers too.

Checklist…Rating
Composite Rating 99 Pass
EPS Rating …80 Pass
RS Rating …95 Pass
Group RS Rating A+ Pass
SMR Rating …A Pass
Acc/Dis Rating …B Pass

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Another great article stating that SEDG is taking market share and well positioned for future solar energy storage.

http://seekingalpha.com/article/3910056-solaredge-set-benefi…

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