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SolarEdge Technologies Q4 Loss Wider Than Expected, Revenues Down Y/Y

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SolarEdge Technologies, Inc. (SEDG - Free Report) reported a fourth-quarter 2024 adjusted loss of $3.52 per share, wider than the Zacks Consensus Estimate of a loss of $1.57. The bottom line also deteriorated from the prior-year quarter’s loss of 92 cents per share.

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Barring one-time adjustments, the company incurred a GAAP loss of $5 per share compared with a GAAP loss of $2.85 in the year-ago period.

The year-over-year deterioration in the bottom line can be attributed to significantly lower revenues and higher financial expenses incurred in the fourth quarter compared with the prior-year quarter.

For 2024, the company incurred an adjusted loss of $22.99 per share, which was wider than the Zacks Consensus Estimate of a loss of $20.65. The full-year bottom line also deteriorated from the prior-year earnings of $4.12 per share.

SEDG’s Revenues

The company’s revenues of $196.2 million surpassed the Zacks Consensus Estimate by 5.3%. However, the top line declined 37.9% from the year-ago quarter’s figure of $316 million.

For 2024, the company generated revenues worth $0.90 billion, significantly below the prior-year figure of $2.98 billion. The full-year top line also missed the Zacks Consensus Estimate of $0.94 billion.

SEDG’s Operational Highlights

SolarEdge Technologies shipped a total of 895 megawatts of inverters and 130 megawatt-hours of batteries in the quarter.

The company incurred an adjusted gross loss of $77.3 million against an adjusted gross profit of $10.5 million in the prior-year period.

Adjusted operating expenses declined 9.7% year over year to $106.8 million.

The company incurred an adjusted operating loss of $184.1 million compared with an operating loss of $107.8 million in the prior-year quarter.

SEDG’s Financial Performance

As of Dec. 31, 2024, SolarEdge Technologies had cash and cash equivalents worth $274.6 million compared with $338.5 million as of Dec. 31, 2023.

The cash outflow from operating activities during 2024 amounted to $313.3 million compared with $180.1 million recorded a year ago.

As of Dec. 31, 2024, total long-term liabilities were $0.93 billion, 27.4% lower than the figure reported at 2023-end.

SEDG’s Q1 2025 Guidance

SEDG expects revenues to be in the range of $195-$215 million for the first quarter of 2025. The Zacks Consensus Estimate for the same is pegged at $219.2 million, which is higher than the company’s guided range.

Adjusted operating expenses are projected to be in the range of $98-$103 million, while adjusted gross margin is expected to be between 6% and 10%.

SEDG’s 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.

A Recent Solar Release

Enphase Energy, Inc. (ENPH - Free Report) reported fourth-quarter 2024 adjusted earnings of 94 cents per share, which increased 74.1% from 54 cents in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 75 cents by 25.3%.

Enphase Energy’s revenues of $382.7 million beat the Zacks Consensus Estimate of $376 million by 1.8%. The top line also increased 26.5% from the prior-year quarter’s figure of $302.6 million.

Upcoming Releases

Here are some other companies from the same industry that are set to report their fourth-quarter results soon.

First Solar, Inc. (FSLR - Free Report) is scheduled to report fourth-quarter results on Feb. 25, 2025. The Zacks Consensus Estimate for FSLR’s earnings is pegged at $4.69 per share, which indicates year-over-year growth of 44.3%.

The consensus estimate for sales is pegged at $1.47 billion, which indicates year-over-year growth of 26.9%.

Sunnova Energy International (NOVA - Free Report) is set to report fourth-quarter 2024 results on March 3. The Zacks Consensus Estimate for NOVA’s earnings is pegged at a loss of 81 cents per share.

The consensus estimate for sales is pegged at $234.5 million, which indicates year-over-year growth of 20.8%.

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