SolarEdge (SEDG) Q4 CY2024 Highlights:

• Revenue: $196.2 million vs analyst estimates of $188.6 million (37.9% year-on-year decline, 4% beat)

• Adjusted EPS: -$3.52 vs analyst estimates of -$1.63 (significant miss)

• Adjusted EBITDA: -$263.2 million vs analyst estimates of -$97.79 million (-134% margin, significant miss)

• Revenue Guidance for Q1 CY2025 is $205 million at the midpoint, below analyst estimates of $207.6 million

• Operating Margin: -134%, down from -71% in the same quarter last year

• Free Cash Flow was $25.55 million, up from -$180.4 million in the same quarter last year

• Megawatts Shipped: 895, in line with the same quarter last year

• Market Capitalization: $770.2 million

Solar power systems company SolarEdge (NASDAQ:SEDG) reported Q4 CY2024 results topping the market’s revenue expectations, but sales fell by 37.9% year on year to $196.2 million. On the other hand, next quarter’s revenue guidance of $205 million was less impressive, coming in 1.3% below analysts’ estimates. Its non-GAAP loss of $3.52 per share was significantly below analysts’ consensus estimates.

SolarEdge shares jumped 17% in premarket trading.

“We are just getting started on our turnaround story. The return to positive free cash flow generation in Q4 is a solid first step, and we expect to be free cash flow positive in Q1 2025 and for the full year 2025,” said Shuki Nir, CEO of SolarEdge.

Company Overview

Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels.

Renewable Energy

Renewable energy companies are buoyed by the secular trend of green energy that is upending traditional power generation. Those who innovate and evolve with this dynamic market can win share while those who continue to rely on legacy technologies can see diminishing demand, which includes headwinds from increasing regulation against “dirty” energy. Additionally, these companies are at the whim of economic cycles, as interest rates can impact the willingness to invest in renewable energy projects.