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SolarEdge Technologies Q3 Loss Wider Than Expected, Revenues Decline Y/Y

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SolarEdge Technologies, Inc. (SEDG - Free Report) reported a third-quarter 2024 adjusted loss of $15.33 per share, wider than the Zacks Consensus Estimate of a loss of $1.55. The bottom line also deteriorated from the prior-year quarter’s loss of 55 cents per share.

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Barring one-time adjustments, the company incurred a GAAP loss of $21.13 per share compared with the GAAP loss of $1.08 per share in the year-ago period.

The year-over-year deterioration in the bottom line can be attributed to significantly lower revenues and higher cost of revenues incurred in the third quarter compared with the prior-year quarter.

SEDG’s Q3 Revenues

The company’s revenues of $260.9 million lagged the Zacks Consensus Estimate of $269.3 million by 3.1%. Moreover, the top line declined 64% from the year-ago quarter’s figure of $725.3 million.

SEDG’s Operational Highlights

SolarEdge Technologies shipped a total of 850 megawatts of inverters and 189 megawatt-hours of batteries in the quarter.

The company incurred an adjusted gross loss of $691.8 million against an adjusted gross profit of $151 million in the prior-year period.

Adjusted operating expenses declined 9.1% year over year to $116.3 million.

The company incurred an adjusted operating loss of $808.1 million against an operating income of $23.1 million in the prior-year quarter.

SEDG’s Financial Performance

SolarEdge Technologies had $303.9 million in cash and cash equivalents as of Sept. 30, 2024 compared with $338.5 million as of Dec. 31, 2023.

The cash outflow from operating activities during the first nine months of 2024 amounted to $325.7 million compared with $40.2 million recorded a year ago.

Total long-term liabilities were $0.96 billion as of Sept. 30, 2024, 25% lower than that reported at 2023-end.

SEDG’s Q4 2024 Guidance

SEDG expects revenues to be in the range of $180-$200 million for the fourth quarter. The Zacks Consensus Estimate is pegged at $299.5 million, which is much higher than the company’s guided range.

Revenues from the solar segment are projected to be in the range of $170-$190 million.

SEDG expects adjusted operating expenses to be in the range of $103-$108 million.

SEDG’s Zacks Rank

SolarEdge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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