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Published: February 20, 2024 5:01 PM ET
SolarEdge Technologies Inc. stock fell more than 14% in extended trading Tuesday. The results are the latest reminder of the ongoing downdraft, after manufacturers of inverters and other solar equipment reported a more than 60% drop in quarterly sales, inducing further sales declines. Ta. For the photovoltaic industry.
SolarEdge launched a cost-cutting plan last month as California’s high interest rates, regulatory changes, lower demand and rising inventories are hurting solar power and related industries.
SolarEdge Technologies Inc. stock fell more than 14% in extended trading Tuesday. The results are the latest reminder of the ongoing downdraft, after manufacturers of inverters and other solar equipment reported a more than 60% drop in quarterly sales, inducing further sales declines. Ta. For the photovoltaic industry.
In an effort to rebuild, SolarEdge last month embarked on a cost-cutting plan and cut jobs as California’s high interest rates and regulatory changes have hit the solar power and related industries with falling demand and rising inventories. It was just announced.
The company, which unexpectedly swung into the red last quarter, said it was weathering “weak market conditions.” Fourth-quarter earnings were mixed, but guidance also disappointed Wall Street.
solar edge
SEDG
The company reported a loss of $162.4 million, or $2.85 per share, in the fourth quarter. Earnings for the year-ago period were $21 million, or 36 cents per share.
Adjusted for one-time items, SolarEdge had a loss of 92 cents per share. Analysts polled by FactSet had expected an adjusted loss of $1.34 per share.
Sales decreased 65% to $316 million from $891 million in the same period last year. This included $282 million in sales from the solar division, which was down 66% from the previous quarter’s sales.
Analysts surveyed by FactSet expected SolarEdge to report revenue of $323 million in the quarter.
The solar power division’s gross margin decreased to 4%, compared to 24% in the previous quarter and 32.4% in the same period last year.
SolarEdge said it expects first-quarter sales to be in the range of $175 million to $215 million, with gross margins in the range of -3% to +1%.
FactSet consensus is for first-quarter revenue of $374 million.
“Guidance was significantly lower than our and market expectations as the company continues to reduce channel inventory,” Trust Securities analyst Jordan Levy said in a note.
Investors are “likely to object to continued margin pressure from SEDG,” Levy added.
SolarEdge stock is down 72% over the past 12 months, compared with a roughly 22% rise in the S&P 500 Index SPX and a roughly 40% decline in the Invesco Solar ETF TAN over the same period.
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