Shares of SolarEdge Technologies Inc. dropped greater than 11% within the prolonged session Tuesday after the maker of inverters and different solar-power tools reported quarterly gross sales that fell greater than 60% and guided for even decrease gross sales, the newest reminder of the continuing downdraft for the photo voltaic trade.
Lower demand amid excessive rates of interest and regulatory adjustments in California, in addition to rising inventories, have pummeled solar-power and associated industries, and SolarEdge simply final month launched into a cost-cutting plan and introduced layoffs to attempt to proper itself.
The firm swung to a shock loss final quarter, saying it was navigating a “slow market environment.” Fourth-quarter earnings had been blended, however steering additionally dissatisfied Wall Street.
SolarEdge
SEDG,
misplaced $162.4 million, or $2.85 a share, within the fourth quarter, versus earnings of $21 million, or 36 cents a share, within the year-ago quarter.
Adjusted for one-time gadgets, SolarEdge misplaced 92 cents a share. Analysts polled by FactSet had been searching for an adjusted lack of $1.34 a share.
Revenue dropped 65% to $316 million, from $891 million a 12 months in the past. That consists of income of $282 million for its photo voltaic section, down 66% from the prior quarter’s income.
The analysts surveyed by FactSet anticipated SolarEdge to report income of $323 million within the quarter.
Gross margin from the photo voltaic section dropped to 4%, in contrast with 24% within the prior quarter and 32.4% in the identical quarter of final 12 months.
SolarEdge guided for first-quarter revenues to be inside the vary of $175 million to $215 million, and gross margins between damaging 3% and a optimistic 1%.
FactSet consensus requires first-quarter income of $374 million.
Guidance “came in more meaningfully below our/Street estimates as the company continues to work to drive down channel inventories,” Truist Securities analyst Jordan Levy stated in his word.
Investors are seemingly “to take issue with SEDG’s continued margin pressures,” Levy added.
SolarEdge shares have misplaced 72% previously 12 months, contrasting with positive aspects of round 22% for the S&P 500 index
SPX
and in contrast with a lack of round 40% for the Invesco Solar ETF
TAN
in the identical interval.
Source web site: www.marketwatch.com
