What Happened?
Shares of solar power systems company SolarEdge (NASDAQ: SEDG) jumped 12.7% in the afternoon session after the stock's positive momentum continued as it reported better-than-expected third-quarter financial results, where both revenue and earnings surpassed analyst forecasts.
The solar technology company posted revenue of $340.2 million, a strong 44.5% increase compared to the same period in the previous year and above the projected $330.29 million. While SolarEdge reported a loss of $0.31 per share, this was narrower than the $0.41 loss that analysts had anticipated. Adding to the positive news, the company also announced a new collaboration with Infineon Technologies to help power data centers.
Is now the time to buy SolarEdge? Access our full analysis report here.
What Is The Market Telling Us
SolarEdge’s shares are extremely volatile and have had 95 moves greater than 5% over the last year. But moves this big are rare even for SolarEdge and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 7% on the news that investor anxiety grew ahead of its third-quarter earnings report, fueled by negative analyst ratings and concerns over future demand. The company was scheduled to release its results on November 5. Prior to the report, it was noted that tariffs were expected to have weighed on profitability by increasing component and import costs. Adding to the negative sentiment, analysts held a consensus “Sell” rating on the stock. A key concern was the potential for a significant reduction in demand for residential solar systems, which was linked to the expiration of a major tax incentive at the end of 2025. This created uncertainty about the company's future revenue.
SolarEdge is up 206% since the beginning of the year, and at $45.27 per share, has set a new 52-week high. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $200.72.
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