Sedg Stock jumps on a strong Q4 – is it solvent, finally, goes to the days? News ad

SOLARSENT technology NASDAQ: SEDG The shares recently survived a surge, which was called a report on profit in the fourth quarter of 2024, which showed that the revenue exceeds the expectation. This positive development contrasts sharply with a broader solar industry, which is currently focusing on the period of significant problem and uncertainty. The key question for investors is whether the recent SOEDEDGE performance signals genuine and stable revolutionary turnover or simply a temporary positive deviation from a prevailing negative trend.

Dark days for solar energy: Solaredzh tank. Trend

Recently, the solar industry has been faced with significant obstacles. Economic uncertainty, excess stocks, prices and demand, especially in Europe, have created a complex environment for many companies in this sector. This has led to intestige associated with solar reserves, while investors are afraid of the short -term prospects of the industry.

Nevertheless, SOEDGE TechNologies, a global leader in the field of intellectual energy technologies specializing in the Smart Energy Technology inverter, reported on the 4th quarter of 2024, which surprised the market. The company’s income exceeded the expectations of SOLEDEDGE TechNologies analysts, providing a rare bright spot in the gloomy sector. The main SOLEDGE business includes the provision of intellectual solutions for inverters that maximize the production of electricity at the individual level of the solar panel, as well as a comprehensive set of SMART Energy proposals, including energy storage, charging electric vehicles and energy management software.

SolarDge revenue is superior

The income report for Solaredge for the fourth quarter of 2024 (4024 Q 2024) was mixed, but the market was focused on the positive. The company announced revenue in the amount of 196.2 million dollars. USA. Despite the fact that this was a significant decrease by 38% per year and 17% compared to the previous quarter, according to Bloomberg Consensus estimates, it exceeded analysts by about 4%.

It is possible that even more important, Solaredge reported a positive free cash flow of 25.5 million dollars. USA per quarter. This represented a significant improvement compared to previous periods and signaled the potential progress in the operational efficiency of the company.

The market enthusiastically reacted to these results. On February 19, 2025, the price of SOLEDGE shares increased by about 16%, reaching the highest point in five months. The volume of trading was significantly higher than the average, which indicates a strong share of investors. The key driver of this surge was a short coating. Before the report on the income, SoRADGE had a high short percentage, and more than 34% of its appeals remained abbreviated. Positive news prompted many short sellers to redeem the shares to cover their posts, even more strengthening the movement in raising prices.

Profitability is delayed by growing

Despite the positive reaction in the market and income, it is extremely important to recognize the less favorable aspects of the profit of the 4th quarter. The company continued to experience significant problems with profitability. SOLDEDGE reported a clean loss of GAAP in the amount of $ 287.4 million. The United States for 4 quarters of 2024, as well as the total margin of GAAP of negative 57.2%. Although gross profit showed some improvement in comparison with sharply negative 309.1%, which was reported in the previous quarter, it remained in the negative territory.

The financial picture was also concerned throughout 2024. SOLDEDGE said that the GAAP pure loss of 1.81 billion dollars. The United States and GAAP gross marges are negative 97.3%, which reflects the significant difficulties that the company has encountered within a year.

A significant factor contributing to these losses was the significant spelling of the assets that Solaredge had to be undertaken in 2024. The company reported a total of 1.17 billion dollars. The United States in the form of write -offs, and in the 4th quarter there were 138 million dollars. This included the mass inventory of $ 1 billion, announced only three months before the profit of the 4 -quarter, accompanied by warnings of profit from the leadership. These write -offs emphasize the problems that Solaradge has encountered in reserves and adaptation to changing market conditions.

The trajectory of the turning of the Solaredzh

Despite the ongoing losses, the 4th quarter reported some encouraging signs, which suggest that a potential turn can be at the beginning. The most noticeable of them was a positive free cash flow of $ 25.5 million. First of all, this was due to the efforts of the company to reduce reserves and the management of trading receivables, which indicates an increase in the efficiency of operation.

Looking into the future, Solaredge provided a cautious guide for the first quarter of 2025, which suggested potential stability. The company expects the revenue from 195 to 215 million dollars. Although this is a sequential decrease in the lower part of the range, it signals a potential day from reducing income. More optimistically, SoolaDege predicted profit (probably based on non-GAAP) in the range from 6% to 10%, which involves potential yield on the positive territory.

The General Director of Shuki Nir also gave an idea of ​​the company’s strategy to solve problems in the European market. He stated that he expects the European reserves that have become the main defeat of the company will return to the normal normal requirement of this market. The key element of the declared plan of the company to improve numbers is based on obtaining a positive cash flow.

Potential, but patience is required

The income of SOEDGE Q4 2024 is a mixed picture for investors. Revenues and a positive free cash flow offer a glimpse of hope, assuming that the company may begin to turn around the corner after a difficult period. Protect prices reflect this new optimism.

Nevertheless, it is very important to remember that there are significant problems. The company continues to report significant pure losses and a negative gross margin. Analytical sentiments have shifted to be more careful, with a recent consensus rating, it will change from holding to a decrease in the rating. The solar industry as a whole continues to encounter the supporting wind.

For investors, the SOLDEGE promotion provides potential and risks. The positive trend of free cash flow, the potential for improving margins and long -term prospects for the growth of the solar energy market give the potential of growth. Nevertheless, the constant problems with profitability, the skepticism of analysts and the volatility of the industry require a cautious approach.

Investors must conduct a thorough proper examination and carefully consider their tolerance to risk before investing in the solution. Careful monitoring of the company’s future reports on profit, in particular, its progress in increasing margin and achieving constant profitability, will be crucial when determining whether the recent positive events are genuine and sustainable revolutionary turnover or simply temporary bright spot. SOLEDGE introduced the “Lighthouse of Hope”, but the full dawn has not yet been guaranteed.

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