On August 4, SolarEdge rose 8.08% in regular trading, trading at $44.57/share, with turnover of $92.85 million. The rally comes one day before the company is scheduled to report its second-quarter results in pre-market trading on August 5.
The surge is driven by heightened market expectations that SolarEdge is approaching a profitability inflection point. The company previously issued Q2 revenue guidance of $325 million to $355 million and explicitly stated it expects operating margin to approach breakeven, a dramatic improvement from last quarter's net margin of -18.48%. Consensus estimates project Q2 revenue of approximately $341 million, representing 24.47% year-over-year growth, with adjusted EPS expected at -$0.00, reflecting a 99.76% improvement from the prior year period.
Supporting the recovery narrative, BofA upgraded the stock to Neutral earlier this year, citing stabilizing revenue, margins, and liquidity. Morgan Stanley has also noted ongoing recovery in core markets and expects adjusted gross margin to rebound to approximately 30% by next year.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)