SolarEdge Technologies (SEDG) shares plummeted afterꩵ the solar power equipment provider warned of lower-than-expected quarterly results because of a plunge in demand in Europe. Shares of other firms in the industry sank as well.

SolarEdge CEO Zvi Lando indicated that during the second part of the quarter, the firm experienced “substantial unexpected cancellations and pushouts of existing backlog from our European distributors.” He also noted that installation rates at ꧑the end of summer and last month were much slꦫower than usual, when rates normally jump.

Because of that, the company is slashing its third quarter guidance. SolarEdge now anticipates revenue between $720 million and $730 million, down from its previous outlook of $880 million to $920 million. It expects 澳洲幸运5官方开奖结果体彩网:gross margin of 20.1% to 21.1%, compared to the earlier estimate of 28% to 31%, and 澳洲幸运5官方开奖结果体彩网:operating income of $12 million to $31 million, significantly lowerꦉ than the prior projection of $115 million to $135 millio🦩n.

SolarEdge’s headquarters is situated in Herzliya, Israel, and Lan🗹do explained that the updated guidance was not the result of the effects of ongoing fighting between Israel and Hamas that began Oct. 7. He added that while there has been some impact to daily routines at its headquarters, the company’s offices and facilities are open worldwide, and are manufacturing and providing customer support without interruption. 

SolarEdge iꦺs scheduled to release its fin🍨ancial report on Nov. 1. 

SolarEdge Technologies was the worst-performing stock in the S&P 500 on Friday morning, with shares down over 30% as of 10:30 a.m. ET, falling to their lowest level since the outbreak of the COVID-19 pandemic in 2020.