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HomeMarketSolarEdge Earnings Top Estimates but the Stock Is Falling

SolarEdge Earnings Top Estimates but the Stock Is Falling

SolarEdge stock was sliding early Tuesday even after reporting strong numbers for its fourth quarter.

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SolarEdge Technologies gave analysts plenty to smile about in its fourth-quarter earnings report. But it seems investors aren’t as happy.

Guggenheim analyst Joseph Osha reiterated his Buy rating on the stock and raised his price target to $452 from $409. “Improving margins, good growth, attractive valuation—what’s not to like?” he wrote in a research note Tuesday, in which he also highlighted the company’s strong quarterly performance.

(ticker: SEDG), the maker of solar panels and inverters, posted fourth-quarter revenue of about $891 million and diluted earnings per share of $2.86, while analysts had expected about $880 million and earnings of $1.54 a share, according to FactSet. 

Though the company posted strong numbers, the stock was sliding 4.8% to $295.80 early Tuesday. 

J.P. Morgan analyst Mark Strouse was also optimistic on the company, maintaining his Overweight rating and increasing his price target on the stock to $361 from $358. 

“SEDG is one of the few solar stocks that is consistently profitable, generates cash, and has a solid balance sheet,” Strouse wrote. “We believe further penetration of the global solar market and expansion into new verticals should allow the stock to outperform our solar coverage.”

Write to Emily Dattilo at emily.dattilo@dowjones.com

Credit: marketwatch.com

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