Current Factors in Play

SolarEdge faced a recent slowdown in market demand, coupled with financial challenges endured by its distributors, leading to a substantial number of order cancellations. The company’s operations were anticipated to be affected by heightened interest expenses in the U.S. and imbalances in the global supply and demand dynamics for solar modules resulting in a probable decline in installation rates and order growth.

The consensus estimate for SEDG’s Q4 revenues is at $322.7 million, signaling a 63.8% decline from the previous year.

EPS Projections and Analysis Model

The Zacks Consensus Estimate for SEDG’s Q4 earnings is a loss of $1.47 per share, reflecting a significant deterioration from the prior-year quarter’s reported earnings.

However, our analysis model does not conclusively predict a positive earnings outcome for SolarEdge this time around. Despite a Zacks Rank #3, the company’s Earnings ESP stands at -11.90%, dampening the potential for an earnings beat.

Alternate Stock Considerations

In the same sector, three other companies show potential to deliver a positive earnings surprise in the current reporting cycle. This includes Cheniere Energy (LNG), FuelCell Energy (FCEL), and Aemetis (AMTX), each with favorable Earnings ESP and Zacks Rank #3.

Expert Recommendations

For additional expert insight, a curated list of 7 elite stocks, selected from a pool of 220 Zacks Rank #1 Strong Buys, has been released. These selected stocks are deemed “Most Likely for Early Price Pops”. Since 1988, the full list has outperformed the market with an average annual gain of 24.0%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.