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 +2.18% change in stock price 10 days leading up to the earnings, and a -1.32% change 10 days following the report. On the earnings day itself, the stock moves by +1.27%. This data can give you a slight idea of what to expect for the next quarter's release.
SEDG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
170.75M
-45.97%
-34.55%
Gross Margin
-63.15%
-6001.87%
-76.50%
Operating Margin
-126.41%
230.14%
-61.37%
Net Margin
-183.26%
256.68%
-60.33%
EPS
-5.44
-90.88%
-74.25%
No Data Available
SEDG Earnings Analysis
Solaredge Technologies Inc Corporation (SEDG.O) Earnings Conference Call
Positive
Strong Free Cash Flow: SolarEdge generated approximately $26 million in free cash flow in Q4, exceeding forecasts and indicating strong cash management.
Positive Free Cash Flow: The company expects to maintain positive free cash flow in Q1 2025 and throughout the year, demonstrating financial stability.
Market Position and Partnerships: SolarEdge has a strong market position with over 70,000 installer partners and millions of customers benefiting from its systems.
Market Share Recovery Strategy: The company is focused on regaining market share through partnerships and improved offerings for installers, enhancing its competitive edge.
Innovation in Energy Management: SolarEdge is accelerating innovation with new products like the SolarEdge ONE Controller and the Nexus residential portfolio, aimed at optimizing energy management.
US Manufacturing Expansion: The company has ramped up US manufacturing, creating nearly 2,000 jobs and increasing production capacity for inverters and optimizers, which supports domestic content initiatives.
Enhanced Liquidity Position: The sale of 45X advanced manufacturing production credits has strengthened SolarEdge's cash position and balance sheet, enhancing liquidity.
Solar Market Resilience: Despite challenges, the long-term fundamentals of the solar market remain healthy, indicating potential for future growth.
Negative
Earnings Miss Reported: SolarEdge missed earnings expectations with a reported EPS of $-3.52, significantly lower than the expected $-1.52.
Inventory Write-Down Impact: The company faced a substantial inventory write-down of $115 million, primarily due to excess inventory in the solar business, indicating potential overproduction or decreased demand.
Long-Lived Asset Impairment: A significant impairment of $23 million was recorded for long-lived assets, primarily related to the energy storage division in Korea, reflecting challenges in that segment.
Quarterly Net Loss Analysis: The company reported a GAAP net loss of $287.4 million in Q4, compared to a loss of $1.23 billion in Q3, indicating ongoing financial struggles despite some improvement.
Q4 Revenue Decline: Total revenues for Q4 were $196.2 million, with a notable decline in North American sell-through, down 17% quarter-over-quarter, suggesting weakening market conditions.
Gross Margin Improvement: The gross margin for the quarter was negative 57.2%, highlighting severe profitability issues, although it improved from the previous quarter's negative 309.1%.
Employee Reduction Announcement: The company announced a reduction of approximately 400 employees worldwide, indicating a need to cut costs amid financial difficulties.
European Market Challenges: The European market remains challenged, with flat sell-through quarter-over-quarter and expectations of a prolonged recovery, which could impact future revenues.
SEDG FAQs
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SEDG Earning Call Sentiment
SolarEdge Technologies, Inc. (NASDAQ:SEDG) Q4 2024 Earnings Call Transcript
SEDG.O
0.87%Positive
The earnings call presents a mixed picture, with some improvements in financial metrics but still significant losses. The Q&A section reveals management's reluctance to provide clear guidance or details on key financial metrics, which may raise investor concerns. The negative gross margin and expected market decline in Europe further contribute to a negative sentiment. The company's market cap suggests that these factors could lead to a moderate negative reaction, with potential stock price decline in the range of -2% to -8% over the next two weeks.
