SolarEdge Technologies Inc. reported a steep fourth-quarter loss of $287 million, yet its stock surged more than 28% on the day of the announcement, reaching an intraday gain of 40% due to a short-covering rally. Despite the loss, the company exceeded Wall Street's expectations with revenue of $196.2 million, which was down 17% from the previous year but beat the anticipated $189.1 million. The adjusted loss per share was $3.52, compared to the expected $1.65, while the GAAP net loss per share was $5.00. SolarEdge also managed to generate positive free cash flow by drawing down inventory and trade receivables. The company's performance in the solar segment contributed $189.0 million in revenue, a decrease of 15% from the prior quarter. Following the earnings release, SolarEdge faced a series of analyst downgrades, with Northland and BMO both downgrading the stock to 'Underperform' with a price target of $15. Truist Securities and Oppenheimer, however, maintained a more positive outlook, highlighting the company's positive free cash flow and signs of recovery.