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SolarEdge (SEDG) to Post Q4 Earnings: What's in Store?
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SolarEdge Technologies, Inc. (SEDG - Free Report) is scheduled to report fourth-quarter and full-year 2023 results on Feb 20, after the closing bell.
In the last reported quarter, the company delivered a negative earnings surprise of 180.88%. SolarEdge has a trailing four-quarter average earnings surprise of 13.23%.
Factors to Note
SolarEdge started to witness slow market demand in the third quarter of 2023, which, along with financial challenges faced by its distributors, resulted in a large number of order cancellations for the company.
SolarEdge Technologies, Inc. Price and EPS Surprise
A similar trend can be expected to have prevailed in the fourth quarter as well, plagued by higher interest expense’s impact on the United States as well as imbalances noticeable in global solar module supply and demand. This, in turn, has most likely impacted installation rates and thereby order growth for solar industry players like SEDG, thereby impacting its top-line performance.
The Zacks Consensus Estimate for SEDG’s fourth-quarter revenues is pegged at $322.7 million, indicating a decline of 63.8% from the year-ago quarter’s level.
On the bottom-line front, the company projects its expenses related to the discontinuation of SolarEdge’s manufacturing in Mexico to worsen in the fourth quarter, which, in turn, might have hurt its earnings. Also, as SEDG is most likely to have ramped up its production in the fourth quarter to make more global deliveries in 2024, it might have incurred higher operating expenses. This, along with weak top-line expectations, might have dampened SEDG’s overall bottom line in the fourth quarter of 2023.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of $1.47 per share, indicating a significant deterioration from the prior-year quarter’s reported earnings.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for SolarEdge this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: SolarEdge’s Earnings ESP is -11.90%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three companies from the same sector that you may want to consider as these have the right combination of elements to post an earnings beat this reporting cycle.
Cheniere Energy (LNG - Free Report) currently has an Earnings ESP of +5.55% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $4.50 billion.
The consensus estimate for LNG’s fourth-quarter earnings is pegged at $2.70 per share. The stock has a four-quarter average earnings surprise of 91.99%.
FuelCell Energy (FCEL - Free Report) currently has an Earnings ESP of +31.03% and a Zacks Rank #3. The Zacks Consensus Estimate for FCEL’s first-quarter fiscal 2024 sales is pegged at $21.8 million.
The consensus mark for the company’s fiscal first-quarter earnings is pegged at a loss of 7 cents per share. FCEL has a four-quarter average earnings surprise of 13.39%.
Aemetis (AMTX - Free Report) currently has an Earnings ESP of +14.74% and a Zacks Rank #3. The Zacks Consensus Estimate for Aemetis’ fourth-quarter 2023 sales is pegged at $80.3 million, implying an improvement of 20.4% from the prior-year reported figure.
AMTX delivered a trailing four-quarter average negative earnings surprise of 134.10%. The consensus estimate for fourth-quarter earnings is pegged at a loss of 35 cents per share.
Image: Bigstock
SolarEdge (SEDG) to Post Q4 Earnings: What's in Store?
SolarEdge Technologies, Inc. (SEDG - Free Report) is scheduled to report fourth-quarter and full-year 2023 results on Feb 20, after the closing bell.
In the last reported quarter, the company delivered a negative earnings surprise of 180.88%. SolarEdge has a trailing four-quarter average earnings surprise of 13.23%.
Factors to Note
SolarEdge started to witness slow market demand in the third quarter of 2023, which, along with financial challenges faced by its distributors, resulted in a large number of order cancellations for the company.
SolarEdge Technologies, Inc. Price and EPS Surprise
SolarEdge Technologies, Inc. price-eps-surprise | SolarEdge Technologies, Inc. Quote
A similar trend can be expected to have prevailed in the fourth quarter as well, plagued by higher interest expense’s impact on the United States as well as imbalances noticeable in global solar module supply and demand. This, in turn, has most likely impacted installation rates and thereby order growth for solar industry players like SEDG, thereby impacting its top-line performance.
The Zacks Consensus Estimate for SEDG’s fourth-quarter revenues is pegged at $322.7 million, indicating a decline of 63.8% from the year-ago quarter’s level.
On the bottom-line front, the company projects its expenses related to the discontinuation of SolarEdge’s manufacturing in Mexico to worsen in the fourth quarter, which, in turn, might have hurt its earnings. Also, as SEDG is most likely to have ramped up its production in the fourth quarter to make more global deliveries in 2024, it might have incurred higher operating expenses. This, along with weak top-line expectations, might have dampened SEDG’s overall bottom line in the fourth quarter of 2023.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of $1.47 per share, indicating a significant deterioration from the prior-year quarter’s reported earnings.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for SolarEdge this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: SolarEdge’s Earnings ESP is -11.90%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SolarEdge currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three companies from the same sector that you may want to consider as these have the right combination of elements to post an earnings beat this reporting cycle.
Cheniere Energy (LNG - Free Report) currently has an Earnings ESP of +5.55% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $4.50 billion.
The consensus estimate for LNG’s fourth-quarter earnings is pegged at $2.70 per share. The stock has a four-quarter average earnings surprise of 91.99%.
FuelCell Energy (FCEL - Free Report) currently has an Earnings ESP of +31.03% and a Zacks Rank #3. The Zacks Consensus Estimate for FCEL’s first-quarter fiscal 2024 sales is pegged at $21.8 million.
The consensus mark for the company’s fiscal first-quarter earnings is pegged at a loss of 7 cents per share. FCEL has a four-quarter average earnings surprise of 13.39%.
Aemetis (AMTX - Free Report) currently has an Earnings ESP of +14.74% and a Zacks Rank #3. The Zacks Consensus Estimate for Aemetis’ fourth-quarter 2023 sales is pegged at $80.3 million, implying an improvement of 20.4% from the prior-year reported figure.
AMTX delivered a trailing four-quarter average negative earnings surprise of 134.10%. The consensus estimate for fourth-quarter earnings is pegged at a loss of 35 cents per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.