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SolarEdge Technologies (SEDG) Q2 Loss Widens, Revenues Fall Y/Y

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SolarEdge Technologies, Inc. (SEDG - Free Report) reported a second-quarter 2024 adjusted loss of $1.79 per share, wider than the Zacks Consensus Estimate of a loss of $1.60. The bottom line also deteriorated from the prior-year quarter’s reported earnings of $2.62 per share.

Barring one-time adjustments, the company incurred a GAAP loss of $2.31 per share against GAAP earnings of $2.03 per share recorded in the year-ago period.

The year-over-year deterioration in the bottom line can be attributed to significantly lower revenues generated in the second quarter of 2024 compared to the prior-year quarter’s level.

Revenues

The company’s second-quarter revenues of $265.4 million lagged the Zacks Consensus Estimate of $267 million. Moreover, the top line also declined 73.2% from the year-ago quarter’s figure of $991.3 million.

Revenues from the solar segment totaled $241.2 million, down 75% from $947.4 million registered in the prior-year period.

Operational Highlights

SolarEdge shipped a total of 873 megawatts of inverters and 128 megawatt-hours of batteries in the reported quarter.

The adjusted gross profit came in at $0.5 million, significantly lower than the adjusted gross profit of $324.2 million recorded in the prior-year period.

Adjusted operating expenses went down 13.9% year over year to $114.8 million.

The company incurred an adjusted operating loss of $114.3 million against an operating income of $191 million in the prior-year quarter.

Financial Performance

SolarEdge had $259.5 million in cash and cash equivalents as of Jun 30, 2024 compared with $338.5 million as of Dec 31, 2023.

The cash outflow from operating activities during the first six months of 2024 amounted to $261.8 million compared with the cash outflow of $80.8 million recorded a year ago.

Total long-term liabilities were $1.28 billion as of Jun 30, 2024, which came in almost flat from the comparable figure at the end of 2023.

Q3 2024 Guidance

SEDG expects revenues in the range of $260-$290 million for the third quarter of 2024. The Zacks Consensus Estimate for the same is pegged at $348.3 million, which is much higher than the company’s guided range.

Revenues from the solar segment are projected in the range of $245-$280 million for the same time frame.

SEDG expects adjusted operating expenses in the $111-$116 million range.

Zacks Rank

SolarEdge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

First Solar, Inc. (FSLR - Free Report) reported second-quarter 2024 earnings of $3.25 per share, up a solid 104.4% from the prior-year quarter’s reported earnings of $1.59 per share. The bottom line also beat the Zacks Consensus Estimate of $2.67 by 21.7%.

First Solar’s second-quarter net sales were $1.01 billion, which surpassed the Zacks Consensus Estimate of $0.95 billion by 6.8%. The top line also improved 24.6% from the year-ago quarter’s $0.81 billion.

Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2024 adjusted earnings of 43 cents per share, highlighting a 70.7% decline from $1.47 reported in the prior-year quarter. The bottom line also lagged the Zacks Consensus Estimate of 49 cents per share by 12.2%.

Enphase Energy’s second-quarter revenues of $303.5 million missed the Zacks Consensus Estimate of $314 million by 1.8%. The top line also declined 57.3% from the prior-year quarter’s reported figure of $711.1 million.

Nextracker Inc. (NXT - Free Report) reported first-quarter fiscal 2025 adjusted earnings of 93 cents per share, highlighting a 93.8% rise from 48 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 66 cents per share by 40.9%.

NXT’s first-quarter revenues of $719.9 million beat the Zacks Consensus Estimate of $618 million by 16.5%. The top line also increased 50.1% from the prior-year quarter’s reported figure of $479.5 million.

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