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 +6.95% change in stock price 10 days leading up to the earnings, and a -0.54% change 10 days following the report. On the earnings day itself, the stock moves by -0.13%. 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
260.90M
-64.03%
-1.70%
Gross Margin
-268.73%
-1464.80%
9779.78%
Operating Margin
-327.25%
14066.67%
461.71%
Net Margin
-461.98%
5380.19%
837.27%
EPS
-21.13
-1856.48%
814.72%
No Data Available
SEDG Earnings Analysis
SolarEdge Technologies, Inc. Corporation (SEDG.O) Earnings Conference Call
Positive
Strong Solar Revenue Performance: 1. Revenue Growth: SolarEdge reported approximately $261 million in revenue for Q3 2024, with solar business revenues reaching approximately $248 million, indicating a strong performance despite market challenges.
U.S. Sales Surge: 2. Increased U.S. Sales: The U.S. residential segment saw an 8% quarter-over-quarter growth in sell-through, while the U.S. commercial segment experienced a 15% increase, showcasing the company's competitive advantages in these markets.
Tax Credit Sale Success: 3. Successful Tax Credit Sale: The company successfully sold its first 45x advanced manufacturing production tax credits for approximately $40 million, enhancing its cash position and balance sheet strength.
Cash Flow Optimization: 4. Improved Cash Flow Management: Free cash use was approximately $75 million in Q3, significantly down from $140 million in the previous quarter, reflecting effective working capital optimization and operational efficiency measures.
Inventory Management Strategy: 5. Inventory Reduction Strategy: SolarEdge consumed approximately $95 million of finished goods inventory in Q3, with plans to normalize inventory levels to represent 90 days by the end of 2025, indicating proactive inventory management.
Negative
Inventory Impairment Issues: 1. Significant Inventory Write-Downs: SolarEdge recorded a $1.03 billion impairment and write-down, including $612 million in inventory write-downs, primarily due to excess inventory and reduced demand in Europe.
Revenue Decline Analysis: 2. Dramatic Revenue Decline: The company reported Q3 revenues of approximately $261 million, down from $450 million in sell-through, indicating a 42% drop in revenue generation.
Deteriorating Gross Margins: 3. Negative Gross Margins: Consolidated GAAP gross margin for the quarter was a negative 269.2%, significantly worse than the negative 4.1% in the previous quarter, driven by the large impairment charge.
Operating Loss Deterioration: 4. Increased Operating Losses: GAAP operating loss for the quarter was $1.09 billion, compared to an operating loss of $160.2 million in the previous quarter, reflecting a substantial deterioration in financial performance.
Q4 Revenue Decline Outlook: 5. Weak Guidance for Q4: The company expects Q4 revenues to decline further to a range of $180 million to $200 million, indicating ongoing challenges in the market and reduced demand.
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SEDG Earning Call Sentiment
SolarEdge Technologies, Inc. (SEDG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SEDG.O
11.34%Positive
The earnings call reveals significant financial challenges, with substantial losses and impairments, especially in Europe. The Q&A section highlights management's uncertainty about achieving revenue targets and their inability to provide clear guidance, further exacerbating investor concerns. Despite some operational improvements, such as reduced inventory and improved DSO, the negative outlook and high losses outweigh these positives. Additionally, the company's inability to commit to future targets and the lack of clarity on pricing impact contribute to a negative sentiment. Given the small-cap nature, the stock is likely to react negatively, with a predicted decline of -2% to -8%.