SolarEdge stock jumped 16% Wednesday after the maker of microinverters for solar panels reported improving margins in its Q4 results.
Israel-based SolarEdge Technologies reported a loss of $3.52 per share adjusted, widening from a loss of 92 cents per share last year. Total revenue fell 17% to $196.2 million.
FactSet analysts expected a loss of $1.50 per share on $189.6 million in sales.
Revenue from the company's solar segment declined 15% to $189 million.
The company's adjusted gross margin was -39.5%, but improved from -305% in the prior quarter. SolarEdge also wrote down $138 million in impairments during the quarter after an asset valuation analysis.
SolarEdge has been posting losses since Q3 2023, and analysts project that to continue through at least the third quarter of 2026.
For Q1 2025, SolarEdge expects revenue to range from $195 million to $215 million, with an adjusted gross margin between 6% and 10%.
SolarEdge Stock Rallies On Earnings
SolarEdge rallied 35% Wednesday, before paring gains to 16% on the day. Shares attempted to rebound above their 40-week moving average, which they haven't traded above since June 2023.
The advance put SEDG stock up about 50% so far for February, angling for its first monthly advance since August and the stock's largest monthly gain since going public in March 2015.
SolarEdge's U.S.-based rival Enphase Energy climbed 1% Wednesday, after rallying 5% in early trade.
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