Michael McCaul-backed SolarEdge Falls Despite Strong Earnings
SolarEdge Technologies (SEDG:US), an Israel-based developer and seller of solar products, reported another set of strong quarterly results as the business continues to enjoy strong demand for its sustainable offerings.
SolarEdge said its revenue increased by 61% to $890.7 million, beating the average analyst estimate of $879 million. The company’s core solar business generated $837 million in sales. Gross profit was reported at $261 million while gross margin came in at 29.3%.
“We are pleased with our fourth quarter results that conclude a challenging yet very successful year. The global economic and geopolitical events coupled with post pandemic dynamics created an unprecedented demand for solar energy in general and our products in particular,” said Zvi Lando, Chief Executive Officer of SolarEdge.
However, operating expenses also increased dramatically, coming in at $266.2 million. The company also offered an outlook for the current quarter, including expectations for revenue of between $915-945 million.
SEDG stock has attracted an interesting buyer in Mr. Michael McCaul, who is currently serving his tenth term representing Texas' 10th District in the United States Congress. Rep. McCaul was consistently buying SEDG shares since early September.
The most recent transaction was also the biggest - $50,000 to $100,000. Rep. McCaul was also buying SolarEdge shares in early October when the stock was trading just above $200 a share. About 4 months later, the solar stock trades at more than $300 per share.