Solaredge Technologies Beats On Earnings And Revenue; Raises Guidance

SolarEdge Technologies (SEDG), a member of my Jubak Picks portfolio, reported first quarter earnings today after the New York markets closed of 87 cents a share, 7 cents a share better than Wall Street projections. Revenue climbed 82.4% year over year (and 10.8% from the prior quarter) to $209.9 million, above the consensus estimate of $204.4 million. Gross margin came in at a record 37.9%. Cash flow from operations was a record $64 million.

For the second quarter the company guided Wall Street to expect revenue of $220 million to $230 million. The prior estimate for the quarter was $211.94 million.

Investors and traders showed some nervousness about the results during the day with the stock trading as low as $54.20 before closing at $55.65, off 0.89% for the day. In after hours trading the shares jumped 5.03% to $58.45.

At the closing price of $55.65 the shares were up 4.8% since I added them to the Jubak Picks Portfolio on April 16, 2018.

Yesterday I sold my May 18, 2018 call options position (strike price of $55) in my Volatility Portfolio. It will be interesting to see how the beat and the time decay of the options balances out in tomorrow’s options trading. I’m certainly happy with the 51% gain I posted on that options position, but I’m always interested in learning more about how traders think of time and risk.