Why Is SolarEdge Stock Skyrocketing Today?

SolarEdge Technologies, Inc. SEDG shares are trading higher after the company reported fourth-quarter results. Revenues of $196.2 million, down 17% sequentially, beat the consensus of $188.704 million.

Revenues from the solar segment declined 15% Q/Q to $189 million. The company shipped 895 Megawatts (AC) of inverters and 130 MWh of batteries for PV applications in the quarter.

Adjusted gross margin was negative 39.5% versus negative 305.0% in the prior quarter, and adjusted operating loss narrowed to $184.1 million from $833.61 million in the prior quarter.

Adjusted loss per share of $3.52 missed the street view for a loss of $1.65.

Operating cash flow for the quarter was $37.8 million and free cash flow was $25.5 million.

As of December 31, cash, cash equivalents, bank deposits, restricted bank deposits, and marketable securities totaled $81.8 million, net of debt, compared to $51.3 million as of September 30, 2024.

Outlook: For the first quarter, the company expects revenue of $195 million-$215 million (versus consensus of $202.79 million) and adjusted gross margin of 6% – 10%.

Last month, the company revealed its 2025 plans, which include layoffs of approximately 400 employees.

The company also expects pre-tax charges of $3 million to $5 million for severance and related costs, primarily cash-based, with the majority recognized in the first quarter of 2025.

Due to the closure of its Energy Storage business in Korea, the company will not report segments in its financial reporting going forward.

Investors can gain exposure to the stock via ProShares S&P Kensho Cleantech ETF CTEX and SPDR S&PKensho Clean Power ETF CNRG.

Price Action: SEDG shares are up 30% at $22.01 premarket at the last check Wednesday.

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