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Feb 20, 2025

Why SolarEdge (SEDG) Is Soaring Today - Insider Monkey

Solar inverter maker SolarEdge (SEDG) is jumping 24% after the company reported mixed fourth-quarter results but delivered positive operating cash flow and provided higher-than-expected Q1 revenue

Solar inverter maker SolarEdge (SEDG) is jumping 24% after the company reported mixed fourth-quarter results but delivered positive operating cash flow and provided higher-than-expected Q1 revenue guidance.

A Look at SolarEdge’s Q4 Results and Its Guidance

The company generated Q4 revenue of $196.2 million, compared with analysts’ average estimate of $188.7 million. However, SEDG’s per-share loss, excluding certain items, came in at $3.52, significantly below the mean outlook of an adjusted per-share loss of $1.65. But the company generated operating cash flow of $37.8 million, versus a cash outflow from operations of $63.9 million in the previous quarter. And in Q4 of 2023, the company’s operations burned $140 million of cash.

A photovoltaic field at dawn, its solar panels shimmering in the light of a new day.

For the current quarter, the midpoint of the company’s revenue guidance range came in at $205 million, compared with analysts’ average estimate of $203 million.

SEDG reported that it expects to generate positive free cash flow during the current quarter and for all of 2025.

More Information About SEDG

Analysts on average expect the company to report a per-share loss of $2.58 this year. However, in 2026, the average estimate calls for the company to enter the black, generating EPS of $1.40.

In the last month, SEDG has soared 65%, while its shares have rallied 98% in the last three months.

While we acknowledge the potential of SEDG, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SEDG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

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