Solar sector-related exchange traded fund led the charge on Tuesday after strong quarterly results out of SolarEdge Technologies (NasdaqGS: SEDG), which helped fuel a rally in its competitor Enphase Energy (NasdaqGS: ENPH).
The Invesco Solar ETF (NYSEArca: TAN) was among the best performing non-leveraged ETFs of Tuesday, rising 6.3%. Among its top components, SolarEdge Technologies shares surged 12.9% while Enphase Energy shares jumped 12.2%.
On Monday after close trading, SolarEdge reported a $0.97 per share in second-quarter earnings, compared to anticipated pro forma profits of only $0.69 per share. The company pointed to strong sales in Europe and Australia, which helped offset a decline in U.S. sales over the second quarter, PV-Tech reports.
Zvi Lando, chief executive at SolarEdge, highlighted the company’s “global strength” for supporting the positive Q2 results, with performance in the Netherlands, Germany, Italy and Australia offsetting a decline in demand from a U.S. market that continues to suffer under a coronavirus pandemic.
“While the pandemic has created many operational challenges, I am confident in our financial strength and grateful for the trust of our customers and dedication of our employees which enable us to continue to focus on product innovation and execution of our long term plans even in these challenging times,” Lando said.
The strong Q2 showing out of SolarEdge also encouraged investors to expect a similar result out of its main rival Enphase Energy, according to the Motley Fool. Enphase is expected to report its past three month results later in the evening. Investors appear willing to bet that the good quarter for SolarEdge could also translate to a good result out of Enphase, which has helped sent share prices higher on Tuesday.
However, while SolarEdge’s performance reached the top end of the guidance over the second quarter, it has warned of a tougher forecast for the third quarter.
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