Earlier in October, the company warned Wall Street of its weak third quarter and soft fourth-quarter guidance.$725 million vs. $768 million expected by LSEG
For its coming fourth quarter, the solar producer reported expected revenue of between $300 million to $350 million. For the overall solar sector, it expects revenue to be between $275 million and $320 million.
SolarEdge CEO Zvi Lando said in a Wednesday statement that the third-quarter disappointment is a reflection of “a slow market environment, which has resulted in high inventory of our products in the distribution channels—in particular in Europe.” headtopics.com
SolarEdge warned Wall Street in October that its third-quarter earnings would come in below expectations, which sent its stock plummeting 30 percent. At the time, Lando said that installation rates for solar panels had declined, though installation rates typically increase during the third quarter.
SolarEdge is based in Israel, but Lando said in October that the Israel-Hamas war has not impacted manufacturing. The solar sector has faced headwinds over the past year as rising interest rates weigh on the demand for solar energy. Last, California voted to cut the compensation rate for a solar incentive program for homeowners. That lower incentive went into effect in April, causing a spike in demand for solar installation as homeowners tried to squeeze in before that April deadline. headtopics.com