Stocks of SolarEdge Technologies clinched another record trading on Thursday, after the solar products company extended its momentum of revenue beats, citing "very strong" sales rally in the US.
SolarEdge capped the after-hours session Thursday up 11.25 percent, marking two consecutive days the renewable energy electronics firm's shares hit a double-digit earnings.
SolarEdge Chief Executive Officer Zvi Lando also helped ease worries over a weakening global demand, considering the company's recent manufacturing gains, by stressing during a post-earnings conference call with market analysts that he did not see any distortion to profits in the first or second quarters.
The company's stocks rose nearly 19 percent after Enphase Energy, which manufactures similar parts for the solar energy market, posted fourth-quarter figures that far surpasses projections, causing analysts to elevate their price aim for SolarEdge, which benefits from the same industrial climate driving Enphase's earnings.
SolarEdge stock was up on 4.2 million share volume in extended session, with full-day average volume in the last 30 sessions reaching more than 1 million shares, FactSet data showed.
On top of its sales volumes, SolarEdge also posted impressive growth numbers in profits and operating income, even as the company ramps up expenditures to develop new business ventures in energy savings and powertrain gears for electric cars.
The Israel-headquartered firm's results and forecast managed to clear a high bar placed by Wall Street, after the company advanced 18 percent on Thursday to a record close of $128 in anticipation of solid results. The stock had rallied 35 percent year-to-date, while the S&P 500 index had grown 4.9 percent.
There's more to SolarEdge's price ascent in recent days: The company has been the target of a public short assault since middle of September, and around 14 percent of its stocks were sold short at last count. SolarEdge's latest rally is sparked in part by short-sellers acquiring shares to close out their positions.
The company's revenue was up almost 60 percent to $418 million, beating the estimate of $413.9 million set by FactSet. SolarEdge has broken past projections for 18 straight quarters, beginning with the first quarterly report as a publicly-listed enterprise in May 2015.
SolarEdge disclosed it sees $425 million to $440 million first quarter revenue, which is above the FactSet consensus as of end of January of $389 million.
The company continues to take advantage of the change in US electrical code that at present has it and rival Enphase functioning as a near-duopoly in supplying the market. And while this scenario will not last forever, as other companies develop products to seize growing demand, SolarEdge's management is putting sales to work as it diversifies its operations.
