SolarEdge Earnings Beat Expectations But Tariffs Weigh On Profitability, Analyst Warns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2025
0mins
Should l Buy SEDG?
Source: Benzinga
Analyst Price Forecast Adjustment: JPMorgan analyst Mark Strouse lowered the price forecast for SolarEdge Technologies from $20 to $18 while maintaining an Overweight rating, following the company's first-quarter earnings that exceeded expectations with revenues of $219.5 million and a smaller-than-expected adjusted loss per share.
New EV Charging Solution Launch: SolarEdge introduced a solar-powered EV charging solution for businesses, which can significantly reduce energy costs for EV fleets, with early users reporting up to a 70% decrease in charging expenses.
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Analyst Views on SEDG
Wall Street analysts forecast SEDG stock price to fall
18 Analyst Rating
1 Buy
12 Hold
5 Sell
Hold
Current: 41.520
Low
6.90
Averages
32.56
High
44.00
Current: 41.520
Low
6.90
Averages
32.56
High
44.00
About SEDG
SolarEdge Technologies, Inc. offers an inverter solution for a solar photovoltaic (PV) system. The Company's products include SolarEdge Power Optimizer, SolarEdge Inverter, StorEdge Solutions and SolarEdge Monitoring Software. Its product roadmap consists of categories, including power optimizers, inverters, monitoring services, energy storage and smart energy management. The Company's power optimizers provide module-level maximum power point (MPP) tracking and real-time adjustments of current and voltage to the optimal working point of each individual PV module. The Company's solution consists of a direct current (DC) power optimizer, an inverter and a cloud-based monitoring platform that operates as a single integrated system.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SolarEdge Technologies Set to Announce Q1 Earnings with Strong Revenue Growth Expectations
- Earnings Announcement Date: SolarEdge Technologies (SEDG) is set to release its Q1 2023 earnings on May 6 before market open, with a consensus EPS estimate of -$0.27, reflecting a significant year-over-year increase of 76.3%, indicating positive signals in the company's recovery of profitability.
- Strong Revenue Expectations: Analysts forecast that SolarEdge's Q1 revenue will reach $305.47 million, representing a 39.2% year-over-year growth, suggesting sustained demand in the renewable energy market and potentially laying a solid foundation for future growth.
- Historical Performance Review: Over the past two years, SolarEdge has exceeded EPS estimates 50% of the time and revenue estimates 88% of the time, reflecting the company's strong capabilities in managing market expectations and delivering performance, which enhances investor confidence.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen 7 upward revisions and 4 downward adjustments, while revenue estimates have experienced 7 upward revisions and 3 downward adjustments, indicating a generally optimistic sentiment in the market regarding SolarEdge's future performance, despite some uncertainties.
See More
SolarEdge Launches New Commercial Storage System for European and Asian Markets
- New Product Launch: SolarEdge's newly launched CSS-OD commercial storage system, with a capacity of up to 197 kWh, is designed for medium to large-scale commercial and industrial applications, significantly enhancing the company's competitiveness in European and Asian markets.
- Significant Market Potential: The system can scale up to 4 MWh per site and supports applications such as self-consumption, peak shaving, and tariff optimization, expected to create new revenue opportunities for PV installers and solidify SolarEdge's leadership in the C&I sector.
- Positive Market Response: The market response to SolarEdge's first CSS-OD product has been extremely encouraging, generating a strong new revenue stream, particularly from its large base of commercial and industrial solar installations, indicating robust market demand.
- Strategic Implications: By integrating commercial storage systems with existing solar installations, SolarEdge not only enhances the diversity of its product portfolio but also lays a foundation for sustainable growth, further advancing the company's strategic positioning in the renewable energy sector.
See More
SolarEdge Launches High-Capacity Commercial Storage System
- New Storage System Launch: SolarEdge's CSS-OD 197 kWh commercial storage system is designed for medium to large-scale commercial and industrial applications, scalable up to 4 MWh per site, significantly enhancing the company's competitive edge in the commercial storage sector amidst rising market demand.
- Accelerating Market Demand: The introduction of this new system builds on the strong adoption of SolarEdge's 102.4 kWh storage solution, reflecting an accelerating demand for commercial storage and presenting new revenue opportunities, particularly as businesses shift towards self-consumption and dynamic tariffs.
- Support for Multifunctional Applications: The new system supports various storage optimization modes, including maximizing self-consumption, peak shaving, and tariff optimization, providing flexible solutions to meet diverse commercial needs and further penetrating the C&I market.
- Safety and Simplified Installation: The CSS-OD 197 kWh system features robust safety and cybersecurity protections, simplifies the installation process, and accelerates commissioning, enhancing customer experience and positioning the company favorably in a competitive landscape.
See More
Goldman Sachs Downgrades SolarEdge to Sell
- Rating Downgrade Impact: Goldman Sachs downgraded SolarEdge from Neutral to Sell, lowering the price target from $36 to $31, which contributed to a 12.7% drop in stock price during Wednesday's trading, reflecting concerns over slower-than-expected growth in the company's core markets.
- Valuation Pressure: Analyst Brian Lee noted that SolarEdge's sales and margin recovery is already fully reflected in its stock valuation, which currently has the highest price-to-earnings ratio among solar equipment peers, indicating that market expectations for future growth may be overly optimistic.
- Market Demand Risks: Although the recent stock rally suggests expectations for improved European demand, Lee cautioned that these expectations may be too high given the rising energy prices due to the war in Iran, leading to potential downside risks to consensus earnings estimates for 2026-27.
- Industry Impact: Bank of America analysts highlighted that the Chapter 11 bankruptcy filing by Freedom Forever, which holds an 8.5% share of the U.S. residential solar market and 25% in California, poses a negative read-through for SolarEdge, potentially affecting its market performance.
See More
BRP Suspends Fiscal 2027 Guidance, Shares Plunge 36%
- Stock Price Plunge: BRP shares fell 36% on Wednesday following the company's announcement on Tuesday to suspend its fiscal 2027 guidance, leading to a sharp decline in investor confidence and a pessimistic outlook on future performance.
- Impact of Guidance Suspension: The suspension of fiscal guidance indicates that BRP is unable to provide clear expectations for future earnings, which may affect its financing capabilities and investor trust, posing challenges for the company's long-term growth.
- Severe Market Reaction: The market's reaction to this news was intense, as the sharp drop in stock price reflects investor anxiety regarding the company's future profitability, potentially leading to further sell-offs and exacerbating the decline.
- Need for Strategic Reevaluation: In the current uncertain market environment, BRP must reassess its strategic direction to restore investor confidence and ensure sustainable growth in the face of intense competition.
See More
Latest Rating Changes on Wall Street
- Apple's Positive Outlook: Wells Fargo reiterates Apple (AAPL) as overweight, anticipating better-than-expected iPhone demand and continued double-digit growth in services ahead of its earnings report, with a price target of $300.
- SolarEdge Downgraded: Goldman Sachs downgrades SolarEdge (SEDG) from neutral to sell, citing elevated expectations and challenging valuation as key factors behind the downgrade.
- Meta's Advertising Growth: Deutsche Bank maintains a buy rating on Meta (META), highlighting that its investments in AI are yielding increasing returns for advertisers, which supports accelerated advertising revenue growth.
- Autodesk Positioned Well: Jefferies initiates coverage on Autodesk (ADSK) with a buy rating, noting its strong positioning in agentic AI and solid fundamentals, presenting an attractive risk/reward profile at current levels.
See More
SolarEdge Technologies Set to Announce Q1 Earnings with Strong Revenue Growth Expectations
- Earnings Announcement Date: SolarEdge Technologies (SEDG) is set to release its Q1 2023 earnings on May 6 before market open, with a consensus EPS estimate of -$0.27, reflecting a significant year-over-year increase of 76.3%, indicating positive signals in the company's recovery of profitability.
- Strong Revenue Expectations: Analysts forecast that SolarEdge's Q1 revenue will reach $305.47 million, representing a 39.2% year-over-year growth, suggesting sustained demand in the renewable energy market and potentially laying a solid foundation for future growth.
- Historical Performance Review: Over the past two years, SolarEdge has exceeded EPS estimates 50% of the time and revenue estimates 88% of the time, reflecting the company's strong capabilities in managing market expectations and delivering performance, which enhances investor confidence.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen 7 upward revisions and 4 downward adjustments, while revenue estimates have experienced 7 upward revisions and 3 downward adjustments, indicating a generally optimistic sentiment in the market regarding SolarEdge's future performance, despite some uncertainties.
See More
SolarEdge Launches New Commercial Storage System for European and Asian Markets
- New Product Launch: SolarEdge's newly launched CSS-OD commercial storage system, with a capacity of up to 197 kWh, is designed for medium to large-scale commercial and industrial applications, significantly enhancing the company's competitiveness in European and Asian markets.
- Significant Market Potential: The system can scale up to 4 MWh per site and supports applications such as self-consumption, peak shaving, and tariff optimization, expected to create new revenue opportunities for PV installers and solidify SolarEdge's leadership in the C&I sector.
- Positive Market Response: The market response to SolarEdge's first CSS-OD product has been extremely encouraging, generating a strong new revenue stream, particularly from its large base of commercial and industrial solar installations, indicating robust market demand.
- Strategic Implications: By integrating commercial storage systems with existing solar installations, SolarEdge not only enhances the diversity of its product portfolio but also lays a foundation for sustainable growth, further advancing the company's strategic positioning in the renewable energy sector.
See More
SolarEdge Launches High-Capacity Commercial Storage System
- New Storage System Launch: SolarEdge's CSS-OD 197 kWh commercial storage system is designed for medium to large-scale commercial and industrial applications, scalable up to 4 MWh per site, significantly enhancing the company's competitive edge in the commercial storage sector amidst rising market demand.
- Accelerating Market Demand: The introduction of this new system builds on the strong adoption of SolarEdge's 102.4 kWh storage solution, reflecting an accelerating demand for commercial storage and presenting new revenue opportunities, particularly as businesses shift towards self-consumption and dynamic tariffs.
- Support for Multifunctional Applications: The new system supports various storage optimization modes, including maximizing self-consumption, peak shaving, and tariff optimization, providing flexible solutions to meet diverse commercial needs and further penetrating the C&I market.
- Safety and Simplified Installation: The CSS-OD 197 kWh system features robust safety and cybersecurity protections, simplifies the installation process, and accelerates commissioning, enhancing customer experience and positioning the company favorably in a competitive landscape.
See More
Goldman Sachs Downgrades SolarEdge to Sell
- Rating Downgrade Impact: Goldman Sachs downgraded SolarEdge from Neutral to Sell, lowering the price target from $36 to $31, which contributed to a 12.7% drop in stock price during Wednesday's trading, reflecting concerns over slower-than-expected growth in the company's core markets.
- Valuation Pressure: Analyst Brian Lee noted that SolarEdge's sales and margin recovery is already fully reflected in its stock valuation, which currently has the highest price-to-earnings ratio among solar equipment peers, indicating that market expectations for future growth may be overly optimistic.
- Market Demand Risks: Although the recent stock rally suggests expectations for improved European demand, Lee cautioned that these expectations may be too high given the rising energy prices due to the war in Iran, leading to potential downside risks to consensus earnings estimates for 2026-27.
- Industry Impact: Bank of America analysts highlighted that the Chapter 11 bankruptcy filing by Freedom Forever, which holds an 8.5% share of the U.S. residential solar market and 25% in California, poses a negative read-through for SolarEdge, potentially affecting its market performance.
See More
BRP Suspends Fiscal 2027 Guidance, Shares Plunge 36%
- Stock Price Plunge: BRP shares fell 36% on Wednesday following the company's announcement on Tuesday to suspend its fiscal 2027 guidance, leading to a sharp decline in investor confidence and a pessimistic outlook on future performance.
- Impact of Guidance Suspension: The suspension of fiscal guidance indicates that BRP is unable to provide clear expectations for future earnings, which may affect its financing capabilities and investor trust, posing challenges for the company's long-term growth.
- Severe Market Reaction: The market's reaction to this news was intense, as the sharp drop in stock price reflects investor anxiety regarding the company's future profitability, potentially leading to further sell-offs and exacerbating the decline.
- Need for Strategic Reevaluation: In the current uncertain market environment, BRP must reassess its strategic direction to restore investor confidence and ensure sustainable growth in the face of intense competition.
See More
Latest Rating Changes on Wall Street
- Apple's Positive Outlook: Wells Fargo reiterates Apple (AAPL) as overweight, anticipating better-than-expected iPhone demand and continued double-digit growth in services ahead of its earnings report, with a price target of $300.
- SolarEdge Downgraded: Goldman Sachs downgrades SolarEdge (SEDG) from neutral to sell, citing elevated expectations and challenging valuation as key factors behind the downgrade.
- Meta's Advertising Growth: Deutsche Bank maintains a buy rating on Meta (META), highlighting that its investments in AI are yielding increasing returns for advertisers, which supports accelerated advertising revenue growth.
- Autodesk Positioned Well: Jefferies initiates coverage on Autodesk (ADSK) with a buy rating, noting its strong positioning in agentic AI and solid fundamentals, presenting an attractive risk/reward profile at current levels.
See More
