SolarEdge Technologies Inc. late Thursday reduce its outlook for third-quarter income and gross margins and stated it expects “significantly lower” fourth-quarter income because it confronted a slowdown in solar-power installations in Europe.
SolarEdge’s inventory
SEDG,
fell greater than 15% within the prolonged session. The maker of inverters and different tools utilized in solar-power programs stated that the slowdown was “unrelated” to the Israel-Hamas conflict.
“During the second part of the third quarter of 2023, we experienced substantial unexpected cancellations and pushouts of existing backlog from our European distributors,” SolarEdge Chief Executive Zvi Lando stated.
The firm attributed the cancellations and pushouts to higher-than-expected stock and slower-than-expected set up charges.
Installation charges for the third quarter “were much slower at the end of the summer and in September, where traditionally there is a rise in installation rates.”
“The adjusted guidance is unrelated to the tragic events that have unfolded in Israel,” the corporate stated.
SolarEdge expects third-quarter income to be in a variety between $720 million and $730 million, which compares with a earlier expectation of between $880 million and $920 million.
Adjusted gross margins are seen between 20.1% and 21.1%, versus a previous forecast of between 28% and 31%.
Adjusted working earnings is predicted to be in a variety between $12 million and $31 million, whereas the corporate beforehand referred to as for $115 million to $135 million.
SolarEdge stated it would report full third-quarter outcomes after the bell on Nov. 1. Analysts polled by FactSet count on the corporate to report adjusted earnings of $1.86 a share on income of $910 million.
The steerage reduce at SolarEdge dragged down different photo voltaic power-related shares within the after-hours session, with shares of microinverter maker Enphase Energy Inc.
ENPH,
off 13% and solar-panel maker SunPower Corp.
SPWR,
shares down 7%. Shares of the Invesco Solar ETF
TAN
dropped 7%.
Source web site: www.marketwatch.com
