SolarEdge, a leading solar inverter manufacturer, surged 24% following the release of its fourth-quarter results. Despite a wider-than-expected per-share loss, the company reported positive operating cash flow and provided higher-than-anticipated first-quarter revenue guidance.
In the fourth quarter, SolarEdge generated $196.2 million in revenue, exceeding analysts’ average estimate of $188.7 million. The company’s per-share loss, excluding certain items, was $3.52, significantly lower than the mean outlook of an adjusted per-share loss of $1.65.
However, a significant improvement was seen in operating cash flow, which jumped to $37.8 million, compared to a cash outflow from operations of $63.9 million in the previous quarter. This marks a notable shift towards generating positive free cash flow.
For the current quarter, SolarEdge’s revenue guidance range is expected to reach $205 million, higher than analysts’ average estimate of $203 million. The company expects to generate positive free cash flow during this period and for all of 2025.
Analysts predict a per-share loss of $2.58 for this year, but entering the black with earnings per share (EPS) of $1.40 is forecasted for 2026. Over the past month, SolarEdge’s shares have surged 65%, while rallying 98% in the last three months.
Source: https://finance.yahoo.com/news/why-solaredge-sedg-soaring-today-153003488.html