SolarEdge has posted a significant loss for the fourth quarter, but its stock price is surging due to better-than-expected revenue. The company reported a loss of $287 million despite beating analyst expectations for revenue, which fell 17% from the year-ago quarter. SolarEdge’s adjusted loss per share was $3.52, exceeding the predicted loss of $1.65. However, the company managed to generate positive free cash flow by reducing inventory and trade receivables. Despite the losses, investors are optimistic about SolarEdge’s future prospects. The stock price has surged nearly 16% on Wednesday following the announcement.
Analysts attribute this surge to SolarEdge’s ability to set a low bar for the quarter, making it easier to beat expectations. However, industry experts point out that the solar sector, including stocks like SolarEdge, has been struggling due to high interest rates and a glut of product, as well as concerns over President Trump’s policies affecting renewable energy. Over the past 12 months, SolarEdge’s stock price has declined by more than 75%.
Source: https://www.cnbc.com/2025/02/19/solaredge-surges-despite-posting-steep-fourth-quarter-loss.html