Expectations Exceeded: Solardege Share Goes Turbo After Quarterly Figures

Milpitas, USA / Herzliya, Israel - The Israeli inverter specialist Solaredge presented its figures for the fourth quarter of 2024 and the full year 2024 last week. As expected, Solaredge recorded a significant decline in revenue in 2024 and posted a high net loss. Nevertheless, the share price rose significantly.

In the fourth quarter, Solaredge's revenue of USD 196.2 million was around 38 percent lower than in the same quarter of the previous year (Q4 23: USD 316.04 million). At USD -287.4 million, the net loss was also significantly higher than in the prior-year quarter due to high depreciation and amortization. At USD 901.5 million, Solaredge's revenue for the year as a whole was around 70 percent below the previous year's figure (USD 2.98 billion). On balance, this results in a loss of USD -1.8 billion for the year as a whole (2023: USD 34.3 million).

Looking at the development in the first quarter of 2025, the Solaredge Management Board expects revenue to be in a range between USD 195 million and USD 215 million. This should mean that sales have bottomed out. In addition, the upper end of the forecast is significantly higher than the mid-range analysts' estimate of sales of USD 206 million for Q1.

Supported by the higher-than-expected forecast for sales in the first quarter of the new financial year and positive analyst comments, Solaredge shares gained 21 percent to EUR 17.48 last week despite the weak figures. The Solaredge share has continued its upward trend in the current trading week. After the first three days of trading, the share is up 7 percent at EUR 18.71 (closing price, February 26, 2025, Stuttgart Stock Exchange). Compared to the price at the turn of the year, this represents an increase of 44 percent.

Source: IWR Online, 27 Feb 2025