Investors drove up the share price of the Israeli solar energy technology company SolarEdge (Nasdaq: SEDG) after it disclosed third-quarter revenues that beat Wall Street forecasts and provided optimistic fourth-quarter revenue estimates.

The share price soared 19% following the announcement.

The company reported record sales for the quarter, exceeding the analysts’ consensus forecast of $822.4 million, coming in at $836.7 million. This is a remarkable 59% increase from the same period last year. 

The GAAP net profit amounted to $24.7 million, up 64% from the previous quarter’s $15.1 million and 53% lower compared to the same quarter last year’s $53.0 million. The GAAP net diluted EPS came in at $0.43, up from $0.26 in the previous quarter but down from $0.96 in the corresponding period last year.

The company’s third-quarter sales growth has been supported by the residential and commercial markets in the EU, as well as its robust product line-up and regional presence.

Zvi Lando, CEO at SolarEdge commented, “We are pleased with our third quarter results, setting new revenue and operating profit records. The results reflect extremely strong momentum in Europe where our revenues grew 90% compared to the same quarter last year.” 

Europeans are increasingly turning to solar energy as gas supplies are threatened by Russia’s invasion of Ukraine and gas and electricity prices are at all-time highs.

According to Ember, an energy research tank, the 27 countries that make up the European Union saved more than $29 billion in imported fossil gas during the course of the summer.

At the same time, solar energy contributed a record 12.2% of the EU’s total electricity generation between May and August of this year.