SolarEdge Technologies, Inc.

SolarEdge Technologies (SEDG) shares slumped more than 20% ahead of Wednesday’s opening bell after the company announced quarterly earnings that fell short of Wall Street’s estimates and provided weaker-than-expected current-quarter sales guidance amid ongoing softness in the retail solar market that has led to an 澳洲幸运5官方开奖结果体彩网:inventory glut.

The maker of solar inverters, power optimizers, and monitoring platforms posted fourth-quarter 澳洲幸运5官方开奖结果体彩网:adjusted earnings of 92 cents per share on revenue of $316 million. Wall Street had expected earnings of $1.17 a share on sales of $354 million. Moreover, the top line fell more than 60% from the prior year, highlighting the severity of the solar industry’s prolonged downturn. For the March quarter, SolarEdge sees revenue coming in between $175 million and $215 million, significantly below analysts’ forecast of $406 million.

The company said weakening demand in the second half of last year due to elevated 澳洲幸运5官方开奖结果体彩网:interest rates has le꧅d to a backlog of inventory that it doesn’t expect to clear until the end of 2024.

“We continue to face challenges from general market dynamics as well as the inventory levels of our products in the channels due to the abrupt slowdown of demand in the second half of 2023,” SolarEdge CEO Zvi Lando said on the company’s earnings call.

Lando anticipates the European residential solar market to bottom in the first quarter, but doesn’t expect the U.S. residential market to recover until interest rates begin to fall. Last month, the company laid off 16% of its global workforce, shuttered its manufacturing operations in Mexico and reduced capacity in China to reduce costs amid the challenging dynamics facing the solar industry.

Since gapping below $90 in mid-October, the SEDG share price has tracked mostly sideways, with volume levels in recent months slightly higher than throughout most of last year. If further selling occurs, monitor if buyers can defend the November and February 澳洲幸运5官方开奖结果体彩网:swing low support area around $64. A successful hold of this level could potentially carve out a 澳洲幸运5官方开奖结果体彩网:triple bottom pattern and mark the ♎beginning of a new trend higher.

SolarEdge shares were down 20.5% at $67.10 at around 7:55 a.m. ET. Through Tuesday's close, the stock had lost about 70% of its value over the past year.

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