Is SolarEdge Technologies a Great Growth Stock?
SolarEdge Technologies' (NASDAQ: SEDG) stock price slumped after it reported its third-quarter results last week. Not only did the company's revenue fall by 18% year over year, but management also provided a weak outlook for the fourth quarter. The big question is: Do these results reflect a deterioration in the company's longer-term prospects, or was the sell-off due to some profit booking in a stock that is still up by 144% year-to-date?
SolarEdge's Q3 revenue decline contrasted sharply with its historic pattern -- the manufacturer of power inverters and optimizers has delivered average growth of 45% a year since its listing in 2015. Last quarter, however, sales were impacted by a slower-than-expected recovery in commercial installations. Installations of new solar power systems, particularly in the commercial segment, remained stalled due to the COVID-19 pandemic.
Management anticipates that commercial installations will recover significantly in 2021, and that its sales will be enhanced by its new series of optimizers, which are more cost effective.
Source Fool.com
