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SolarEdge (SEDG) Q4 Earnings Top Estimates, Revenues Fall Y/Y

Shares of SolarEdge Technologies, Inc. SEDG lost 12.1% to reach $74.14 on Feb 21, following the company’s latest financial report release.  

It reported a fourth-quarter 2023 adjusted loss of 92 cents per share, narrower than the Zacks Consensus Estimate of loss of $1.47. The bottom line deteriorated from the prior-year quarter’s reported earnings of $2.86 per share.

Barring one-time adjustments, the company recorded a GAAP loss of $2.85 per share against earnings of 36 cents recorded in the year-ago period.

For 2023, SEDG reported adjusted earnings of $4.12, down 30.8% from $5.95 in the prior year

Revenues

The company’s quarterly revenues of $316 million missed the Zacks Consensus Estimate of $320 million by 1.2%. The top line also declined 64.5% from the year-ago quarter’s figure of $890.7 million.

Revenues from the solar segment totaled $282.4 million, down 66% from $837 million registered in the prior-year period.

For 2023, SolarEdge reported revenues of $2.98 billion, down 4.3% from $3.11 billion in the prior year.

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise
SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

SolarEdge Technologies, Inc. price-consensus-eps-surprise-chart | SolarEdge Technologies, Inc. Quote

Operational Highlights

SolarEdge shipped a total of 901 megawatts of inverters and 133 megawatt-hours of batteries in the reported quarter.

The adjusted gross margin contracted 2,690 basis points to 3.3% from the prior-year figure of 30.2%.

Adjusted operating expenses went down 1% year over year to $118.3 million.

The adjusted operating loss totaled $107.8 million against an operating income of $149.6 million in the prior-year quarter.

Financial Performance

SolarEdge had $338.5 million in cash and cash equivalents as of Dec 31, 2023, compared with $783.1 million as of Dec 31, 2022.

The cash outflow from operating activities for 2023 amounted to $180.1 million against a cash inflow of $31.3 million in the prior year.

Total long-term liabilities were $1.28 billion as of Dec 31, 2023, compared with $1,20 billion as of Dec 31, 2022.

Q1 2024 Guidance

SEDG expects revenues in the range of $175-$215 million for the first quarter of 2024. The Zacks Consensus Estimate for the same is pegged at $344.9 million, which lies higher than the company’s guided range.

Revenues from the solar segment are projected in the range of $160-$200 million for the same time frame.

SEDG expects adjusted operating expenses in the $122-$130 million range.

Zacks Rank

SolarEdge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

Enphase Energy, Inc. ENPH reported fourth-quarter 2023 adjusted earnings of 54 cents per share, indicating a 64.2% decline from $1.51 reported in the prior-year quarter. The bottom line met the Zacks Consensus Estimate.

Enphase Energy’s fourth-quarter revenues of $302.6 million missed the Zacks Consensus Estimate of $327 million by 7.5%. The top line also declined 58.2% from the prior-year quarter’s reported figure of $724.7 million.

SunPower Corporation SPWR reported a fourth-quarter 2023 adjusted loss of 51 cents per share against earnings of 11 cents posted in the prior-year period. The loss was wider than the Zacks Consensus Estimate of a loss of 27 cents per share.

During the quarter under review, SunPower’s adjusted revenues totaled $361.3 million, while GAAP revenues amounted to $356.9 million. The GAAP top line deteriorated 28.3% from the year-ago quarter’s figure of $498 million. The Zacks Consensus Estimate for SPWR’s top line was pegged at $365 million.

Upcoming Solar Release

First Solar, Inc. FSLR: The Zacks Consensus Estimate for FSLR’s fourth-quarter revenues is pegged at $1.31 billion, implying growth of 30.8% from the year-ago period’s reported figure.

The Zacks Consensus Estimate for First Solar’s fourth-quarter earnings is pegged at $3.19 per share, implying a massive improvement from the year-ago quarter’s reported loss. First Solar has a trailing four-quarter average earnings surprise of 28.97%.

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