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SolarEdge -10% after missing on FQ1 revenues, guiding Q2 below consensus

Published 11/10/2016, 11:29 AM
SolarEdge -10% after missing on FQ1 revenues, guiding Q2 below consensus
SEDG
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  • SolarEdge Technologies (SEDG -10.2%) sinks after posting mixed FQ1 results but guiding FQ2 revenues below analyst expectations at $110M-$120M, vs. $137M consensus.
  • FBR downgrades shares to Market Perform from Outperform with a $17 price target, slashed from $32, saying it expects the U.S. market to remain sluggish longer than previously thought, with 2017 Y/Y installation growth closer to 15%-20%, down from 20%-30%.
  • FBR notes that while FQ1 revenues of $128.5M missed the low end of the $130M-$139M guidance, gross margin of 32.6% exceeded the guided 30%-32% range, suggesting that SEDG continues to value sustained profitability above chasing less profitable market share, a strategy the firm agrees with.

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