SolarEdge Reports Narrower Loss; Shares Surge Over 16%

SolarEdge Technologies sees shares rise over 16% after a report shows a narrower loss in Q4. The company's performance may indicate a potential recovery, influencing investor sentiment positively.

Date: 19-02-2025

AI Rating: 6

Performance Overview

SolarEdge Technologies, Inc. reported a narrower loss of $287.4 million in the fourth quarter compared to a significant loss of $1.231 billion in the previous quarter. The loss per share improved remarkably from $21.58 a year ago to $5.00, signalling a more stable financial position.

On an adjusted basis, SolarEdge reported a loss of $202.5 million, or $3.52 per share, which is a considerable improvement from the adjusted loss of $899.81 million, or $15.781 per share, in the prior quarter. These figures indicate an effort to control costs and potentially a shift toward profitability over time, which may positively impact stock prices.

Revenue Trends

However, the report also highlights challenges as the company faced a 17% decline in revenues to $196.2 million, down from $235.4 million the previous year. The decline in solar segment revenues was also notable, with a drop of 15% to $189.0 million compared to $222.1 million the year before.

Looking forward, SolarEdge projects revenues to be between $195 million and $215 million in the first quarter of 2025. This forward guidance, although indicating a potential recovery from the recent decline, still shows a conservative outlook which may temper investor expectations.

Stocks: SEDG