What Happened?
Shares of solar power systems company SolarEdge (NASDAQ:SEDG) jumped 11.1% in the afternoon session after the company reported strong first quarter 2025 results which beat analysts' sales and EBITDA estimates. Sales rose by 12% from the last quarter, driven by more shipments of inverters and batteries. This signaled improving demand, even with policy headwinds still in play. Zooming out, we think this quarter featured some important positives.
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What The Market Is Telling Us
SolarEdge’s shares are extremely volatile and have had 89 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 biggest move we wrote about over the last year was 3 months ago when the stock gained 35.2% on the news that the company reported impressive fourth-quarter results, which blew past analysts' revenue expectations. In addition, it posted positive free cash flow and guided for more of the same in 2025 (both Q1 and full year). On the other hand, its EBITDA and EPS fell short of Wall Street's estimates. Still, the company emphasized its 'turnaround story,' likely giving investors more reasons for optimism. Overall, this was a mixed yet decent quarter.
SolarEdge is down 1.5% since the beginning of the year, and at $14.58 per share, it is trading 75.7% below its 52-week high of $60.07 from May 2024. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $115.94.
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