SolarEdge (SEDG.US) Takes $1B Q3 Impairment, Disappointing Revenue And Profit Trigger A Sell-off
AInvestThursday, Nov 7, 2024 1:30 am ET
1min read
SEDG --

SolarEdge Technologies (SEDG.US) released its third-quarter earnings on Wednesday, showing a 64% YoY drop in sales to $260.9 million, below analysts' consensus of $290.9 million. The non-GAAP loss per share was $15.33, below analysts' consensus. The company wrote down $1bn and warned that its gross margin in the next quarter would be zero or negative, leading to a more than 20% drop in its share price.The fourth-quarter revenue guidance of $190mn was also disappointing, 38.9% lower than analysts' expectations. The company expects its non-GAAP gross margin to be between -4% and 0%, including a 1,000-basis-point benefit from the IRA manufacturing tax credit.Interim CEO Ronen Faier said, "As SolarEdge navigates through this difficult period in its history, we are focused on three key priorities: financial stability, regaining market share, and refocusing on our core solar and storage opportunities."The disappointing results and guidance reflected the challenges faced by the solar industry, including high interest rates and inventory overhang. The company attributed the $1.03bn writedown to the decline in the value of various assets following an analysis of valuations.As of the writing, the stock was down 17.07% overnight, bringing its year-to-date losses to over 80%. Even for a stock like SolarEdge, which has historically been volatile, this drop is noteworthy.

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