SolarEdge Technologies to Report Q2 Earnings: What's in the Cards?

SolarEdge Technologies, Inc. SEDG is scheduled to release its second-quarter 2025 results on Aug. 7, before market open. 

In the last reported quarter, the company delivered an earnings surprise of 5%. However, SolarEdge has a negative four-quarter average earnings surprise of 255.03%.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors at Play Ahead of SEDG’s Q2 Results

SolarEdge has been witnessing a significant downturn in demand for its products in the past few quarters, with its distributors encountering continuous financial challenges. Such a low demand situation is projected to have persisted in the second quarter of 2025 as well, particularly in North America, which must have hurt the year-over-year sell-through of SEDG’s optimizers, batteries and inverters. However, an improved sell-through is expected in the European market. So, the overall sell-through influence on the company’s top-line performance can be expected to have been moderate during the second quarter.

Moreover, with the solar energy market being subject to seasonal trends, SolarEdge’s revenues in the April-June quarter may have benefited from increased PV installation activity during the typically favorable spring and early summer months, supported by extended daylight hours. 

Also, increasing power prices across many regions and rising battery attachment rates must have aided the company’s overall revenue performance in the second quarter. However, newly announced and incremental import tariffs on products from China, as well as tariffs on imports from other countries, might have a negative impact on SEDG’s earnings to some extent.

However, the company’s cost-cutting efforts, solid revenue growth expectations, reductions in operating expenses and improvements in the gross margin are likely to have boosted its earnings performance.

SolarEdge can be expected to have generated break-even free cash flow in the second quarter of 2025, with disciplined cash management and inventory reductions likely to have offset tariff impacts.

Q2 Expectations for SEDG

The Zacks Consensus Estimate for SEDG’s sales stands at $273.7 million, which suggests a rise of 3.1% from the year-ago reported number. 

The Zacks Consensus Estimate for earnings is pegged at a loss of 82 cents per share, which implies a significant improvement from the year-ago reported loss of $1.79.

What the Zacks Model Unveils for SEDG

Our proven model predicts an earnings beat for SolarEdge this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.

Earnings ESP: SEDG has an Earnings ESP of +4.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, SolarEdge carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are three other companies from the same sector that also have the right combination of elements to post an earnings beat this reporting cycle:

Array Technologies ARRY is slated to report its second-quarter 2025 results on Aug. 7, after market close. It has an Earnings ESP of +79.87% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for ARRY’s second-quarter sales is pegged at $287.7 million, which calls for a 12.5% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 21 cents per share.

HighPeak Energy HPK is expected to report its second-quarter 2025 results on Aug. 11, after market close. It has an Earnings ESP of +58.33% and carries a Zacks Rank of 2 at present. 

The Zacks Consensus Estimate for HPK’s second-quarter sales is pegged at $211.6 million. The consensus estimate for earnings is pinned at 12 cents per share.

Infinity Natural Resources Inc. INR is set to post second-quarter earnings on Aug. 11, after market close. It has an Earnings ESP of +13.33% and carries a Zacks Rank of 3 at present. 

The Zacks Consensus Estimate for INR’s second-quarter sales is pegged at $84.1 million. The consensus estimate for earnings stands at 45 cents per share.

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This article originally published on Zacks Investment Research (zacks.com).

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