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 on my subscription JubakAM.com and JugglingwithKnives.com sites. 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.