What happened Shares of solar energy company SolarEdge Technologies Inc (NASDAQ: SEDG) fell as much as 15.7% in trading Tuesday after reporting first-quarter 2020 financial results. At 2:30 p.m. EDT, shares were still down 15% for the day. So what Revenue fell 6% versus a year ago to $405.5 million, and net income dropped from $42.2 million to $30.1 million, or $0.55 per share. On a non-GAAP basis, earnings were $0.98 per share. Results actually topped the $396.2 million in revenue that analysts expected and fell just $0.01 shy of earnings estimates. Image source: Getty Images. For the second quarter of 2021, management expects revenue of $445 million to $465 million, with non-GAAP gross margin of 32% to 34%. This would be down from a 36.5% non-GAAP gross margin in the first quarter. Now what SolarEdge's results weren't terrible, but with shares trading at eight times revenue, investors are expecting a lot of growth from the company. And right now, revenue is going in the wrong direction. I would also be concerned with margins, as cost pressures hit the electronics industry. Solar companies have limited pricing power, so we could see margin contraction if costs go up, and that may be something investors are taking more seriously today. 10 stocks we like better than SolarEdge TechnologiesWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and SolarEdge Technologies wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Travis Hoium has no position in any of the stocks mentioned. The Motley Fool recommends SolarEdge Technologies. The Motley Fool has a disclosure policy.Source