Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - SolarEdge Technologies (NASDAQ:SEDG) stock is rallying in pre-market trading after reporting second-quarter revenue that exceeded expectations by $37 million, according to GLJ Research. The company, currently valued at $1.53 billion, has seen its stock surge 89.63% year-to-date despite showing weak financial health metrics according to InvestingPro analysis.
GLJ Research maintained its Hold rating and $6.90 price target on SolarEdge, noting that the revenue beat appears to be driven by temporary factors rather than organic demand growth. The firm pointed out that SolarEdge’s Deferred Revenue and Customer Deposits declined by $39.3 million quarter-over-quarter, nearly matching the revenue beat amount. InvestingPro data reveals concerning fundamentals, including a negative gross profit margin of -87.07% over the last twelve months. Get access to 8 more key ProTips and comprehensive analysis with an InvestingPro subscription.
Despite the revenue outperformance, SolarEdge posted a pre-tax loss of $118.8 million, missing consensus estimates of negative $96.6 million. GLJ Research expressed concern about the company’s profitability even during what it describes as a "government-created demand spike." While the company maintains healthy liquidity with a current ratio of 2.04, indicating sufficient assets to cover short-term obligations, analysts tracked by InvestingPro do not expect profitability this year.
The research firm highlighted that the Safe Harbor benefit, which has been supporting SolarEdge’s results, will end after the third quarter. According to GLJ’s analysis, SolarEdge has already drawn down $103.7 million of the $113.5 million in deferred revenue built up in Q4 last year, leaving just $9.9 million remaining.
GLJ Research also noted longer-term challenges for SolarEdge, particularly pointing to the planned phase-out of the 30% Investment Tax Credit for residential solar beginning in 2026, which could significantly impact the residential market where SolarEdge has substantial exposure.
In other recent news, SolarEdge Technologies Inc . reported its second-quarter financial results, showcasing a notable performance that exceeded market expectations. The company announced a second-quarter adjusted loss of $0.81 per share, which was better than the analyst projections of a $0.85 loss. SolarEdge’s revenue reached $289.41 million, surpassing the anticipated $273.63 million and marking a 32% increase from the previous quarter. These results indicate a positive shift for the company, highlighting revenue growth and improved margins. The financial performance has been a significant development for SolarEdge, reflecting a potential turnaround. This recent news underscores the company’s progress and provides investors with insights into its current financial health.
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