As you might know, SolarEdge Technologies, Inc. (NASDAQ:SEDG) just kicked off its latest quarterly results with some very strong numbers. SolarEdge Technologies beat expectations with revenues of US$219m arriving 7.5% ahead of forecasts. The company also reported a statutory loss of US$1.70, 5.7% smaller than was expected. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SolarEdge Technologies after the latest results.
Our free stock report includes 2 warning signs investors should be aware of before investing in SolarEdge Technologies. Read for free now.
Taking into account the latest results, the most recent consensus for SolarEdge Technologies from 31 analysts is for revenues of US$1.10b in 2025. If met, it would imply a huge 20% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 81% to US$5.54. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.05b and losses of US$5.35 per share in 2025. So it’s pretty clear consensus is mixed on SolarEdge Technologies after the new consensus numbers; while the analysts lifted revenue numbers, they also administered a modest increase to per-share loss expectations.
View our latest analysis for SolarEdge Technologies
There was no major change to the consensus price target of US$15.05, with growing revenues seemingly enough to offset the concern of growing losses. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic SolarEdge Technologies analyst has a price target of US$27.00 per share, while the most pessimistic values it at US$5.00. So we wouldn’t be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting SolarEdge Technologies’ growth to accelerate, with the forecast 28% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SolarEdge Technologies to grow faster than the wider industry.
