SolarEdge plunges on revenue miss, weak Q1 guidance
SolarEdge's (SEDG) shares dropped more than 15% after posting fourth-quarter sales that missed analysts’ expectations.The company's guidance for the first quarter also fell significantly below street estimates, with revenue projected to range between $175 million to $215 million, compared to analysts' expectations of $373 million for the quarter.
Yahoo Finance Senior Business Reporter Ines Ferré reports on these numbers and the various challenges the energy company is facing.
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Editor's note: This article was written by Eyek Ntekim
Video Transcript
- Solar energy of shares nosediving after fourth quarter sales and the company's outlook disappointed Wall Street. And we're not just talking about a normal nosedive, you're looking at a losses of 15%. Yahoo Finance's Ines Ferre has more on that move. Ines.
INES FERRE: Yeah, Seana, SolarEdge on the earnings call talking about an abrupt slowdown and also an inventory backlog. We're taking a look at shares that are down 15% and our clean energy chart here. And this is after the company's guidance for the first quarter came in.
What one analyst called meaningfully below what street estimates were with the company expecting revenue to come in anywhere between 175 to 215 million. Street's expecting 373 million for the quarter. You see the results for their fourth quarter right there.
On the earnings call, management talking about that slowdown in Europe. Management said that in 2022 and beginning of 2023, they saw an unprecedented demand for their inverters. Now, they're seeing unforeseen tapering demand.
Also in the US while the commercial market is growing because companies are going net zero, the residential market is slowing significantly. In fact, management saying that they don't see significant changes in residential dynamics until the interest rates decline. And that is something that we have seen over and over when it comes to solar technology stocks, when it comes to green energy, renewable energy stocks. The higher for longer interest rates are really hammering this industry, guys.
- All right, Ines. Thanks so much for tracking. That ticker here for us today. Certainly one of the top trending tickers that we've been tracking on the Yahoo Finance platform. Appreciate it.
