SolarEdge Q3 revenue slightly misses estimates on soft demand
Overview
Smart energy technology firm's Q3 revenue slightly missed analyst expectations, declining yr/yr and sequentially
Adjusted net income and operating profit for Q3 beat analyst expectations
Company cites cost reduction efforts and focus on profitability amid softer demand
Outlook
Company sees Q4 2026 revenue between $245 mln and $275 mln
Company expects Q4 2026 non-GAAP gross margin of 17% to 21%
Company anticipates Q4 2026 non-GAAP operating expenses of $87 mln to $91 mln
Result Drivers
SOFTER DEMAND - Co said near-term market uncertainty and softer demand weighed on Q3 results
COST REDUCTION - Co said it is taking steps to reduce costs and sharpen focus to support profitability
IEEPA TARIFF BENEFIT - Q3 gross margin included $36 mln benefit related to IEEPA tariff matters
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $326.10 mln | $326.60 mln (19 Analysts) |
Q3 Adjusted Net Income | Beat | $21.10 mln | $3.54 mln (15 Analysts) |
Q3 Net Loss | $8.40 mln | ||
Q3 Gross Margin | 33.20% | ||
Q3 Adjusted Operating Profit | Beat | $23.90 mln | $1.37 mln (13 Analysts) |
Q3 Adjusted Gross Margin | 34.70% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 19 "hold" and 6 "sell" or "strong sell"
The average consensus recommendation for the renewable energy equipment & services peer group is "buy."
Wall Street's median 12-month price target for SolarEdge Technologies, Inc. is $35.00, about 6.4% above its November 3 closing price of $32.88
The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 44 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)