SolarEdge Technologies (SEDG) closed up 17.94% today ahead of fourth quarter earnings due after the close. Cascend Securities raised its target price on the shares by 17% during today’s session.
Today’s jump will, of course, make it harder for the company to beat expectations with today’s earnings report. The stock is already up 28.1% in 2020. (In trading after the earnings release, the stock fell just 0.88%. That’s a very good outcome after a jump of this size in the regular session.)
Analysts proejcted that the company would report earnings for the quarter of $1.05 a share, up from 27 cents a share in the fourth quarter of 2018 on a 57% increase in sales.
The theory is that after quarters when pricing was under pressure due to supply that exceeded demand for the company’s solar energy inverters, this quarter will see strong demand with higher prices for inverters.
The company has missed analyst earnings projections for the last four quarter but has exceeded revenue forecasts every quarter since the company went public in March 2015.
SolarEdge Technologies is a member of my Jubak Picks Portfolio. The shares are up 140.72% since I added them to that portfolio on April 16, 2018.