SEDG Earnings Prediction
The chart below shows how SEDG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SEDG sees a +3.32% change in stock price 10 days leading up to the earnings, and a +3.22% change 10 days following the report. On the earnings day itself, the stock moves by +2.20%. This data can give you a slight idea of what to expect for the next quarter's release.
SEDG Key Earning Data
SEDG Earnings Analysis
Positive
Strong Revenue Performance: In Q1, SolarEdge delivered quarter-over-quarter and year-over-year revenue growth, indicating strong financial performance.
Operational Efficiency Improvement: The company expanded its gross margins and reduced operating expenses, showcasing improved operational efficiency.
Positive Free Cash Flow: SolarEdge achieved its second consecutive quarter of positive free cash flow, reflecting effective cash management strategies.
Market Leadership Recognition: The company was recognized as the number one inverter supplier in the U.S. for rooftop solar installations by Wood Mackenzie, highlighting its market leadership.
Rising Demand for Residential Batteries: There is a growing demand for SolarEdge's residential batteries, supported by changes in regulations and participation in Virtual Power Plant (VPP) programs.
Market Share Recovery: In Europe, SolarEdge reported a 6% quarter-over-quarter increase in sell-through, indicating a positive trend in market share recovery.
Enterprise Opportunity Pipeline: The company has a healthy pipeline of opportunities in the enterprise space, having signed several agreements with major clients.
Nexis Platform Launch: SolarEdge's new Nexis platform is on track for initial volumes in Q4 2025, demonstrating commitment to innovation.
U.S. Manufacturing Expansion: The company is ramping up U.S. manufacturing, creating nearly 2,000 jobs and increasing production capacity significantly.
Strong Cash Position: SolarEdge's cash position remains strong with approximately $794 million in cash and investments, providing a solid financial foundation.
Negative
Gross Margin Impact Forecast: The company anticipates a negative impact on gross margins due to newly imposed tariffs, estimating a 2% reduction in Q2 and a potential 4% to 6% impact in the second half of the year.
Revenue Growth with Pricing Pressures: Despite a quarter-over-quarter revenue growth, the ASP per watt decreased by 17% from Q4, indicating pricing pressures in the market.
North America Sell-Through Decline: The sell-through in North America was down 18% quarter-over-quarter, primarily attributed to seasonality, which raises concerns about demand stability in that region.
Free Cash Flow Downgrade: The company expects to be approximately free cash flow breakeven for the full year due to the impact of tariffs, which is a downgrade from previous expectations of positive free cash flow generation.
Non-GAAP Net Loss Analysis: Non-GAAP net loss for Q1 was $66.1 million, although improved from a loss of $202.5 million in Q4, it still indicates ongoing financial challenges.
Q1 Operating Loss Analysis: Operating loss for Q1 was $72.4 million, which, while better than the previous quarter, still reflects significant operational difficulties.
Divestment for Cost Reduction: The company had to divest its tracker business and sell a battery manufacturing facility to reduce operating expenses, suggesting financial strain and a need to streamline operations.
SEDG FAQs
How does SEDG typically perform around its earnings report dates?
SEDG's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +3.32% change leading up to the report and a +3.22% change in the 10 days following the release.
Is Solaredge Technologies Inc (SEDG) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
SEDG Earning Call Sentiment
SolarEdge Technologies, Inc. (SEDG) Q1 2025 Earnings Call Transcript
SEDG.O
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