Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Investing.com -- Shares of SolarEdge Technologies (NASDAQ: NASDAQ:SEDG) soared 26% after the company reported fourth-quarter revenues that exceeded consensus estimates and provided an optimistic outlook for the first quarter of 2025. Despite a challenging year, the company’s return to positive free cash flow and expectations of revenue stabilization in the US and EU markets have contributed to the stock’s surge.
SolarEdge Technologies announced revenues of $196.2 million for the fourth quarter, a decrease of 17% from the previous quarter but above the consensus estimate of $194.95 million. The company’s revenue for the same quarter last year was not disclosed, preventing a year-over-year comparison. The reported EPS of ($3.52) fell short of the analyst estimate of ($1.66), reflecting the impact of asset write-downs and impairments totaling $138 million.
However, the company’s outlook for the first quarter of 2025 is positive, with expected revenues between $195-215 million, which is in line with or slightly above the consensus estimate of $207.9 million. This guidance, along with the company’s return to positive free cash flow generation in the fourth quarter, signals a potential turnaround.
Analysts have weighed in on the company’s performance and prospects. Oppenheimer analyst Colin Rusch reiterated a Perform rating, highlighting the importance of positive free cash flow in the fourth quarter. "We are encouraged by 1Q25 guidance coming in at or slightly above expectations as it appears revenue and margins have bottomed with both the US and the EU showing signs of recovery," Rusch commented.
Truist Securities analyst Jordan Levy maintained a Hold rating and a $14.00 price target, noting the company’s better-than-expected fourth-quarter revenues and positive free cash flow. Levy also pointed to the guidance for first-quarter gross margins, which are expected to be between 6% to 10%, as a positive indicator for the company’s performance in 2025.
SolarEdge’s CEO, Shuki Nir, expressed optimism about the company’s future, stating, "There are exciting opportunities ahead for SolarEdge. We are just getting started on our turnaround story." With the new leadership and strategic focus, investors appear to be responding to the potential for a recovery in the company’s financials and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.