Why Tigo Energy Shares Are Diving Today?

Tigo Energy Inc TYGO shares are trading lower by around 20% after the company provided weaker-than-expected Q3 FY23 preliminary financial results.

The company cut Q3 revenue outlook to $17 million-$18 million (vs. consensus of $43.3 million) from $41 million-$45 million expected earlier.

TYGO now expects an adjusted EBITDA loss for Q3 vs (adjusted EBITDA of $1 million-$3 million expected earlier), but couldn't provide an estimated amount until Q3-end.

The company projects backlog to be within $66 million-$68 million as of Q3 FY23. 

"During the third quarter of fiscal 2023, a significant number of customers requested that Tigo delay purchase order deliveries to the fourth quarter of 2023 or early 2024. We believe the inventory supply in the channel that we previously discussed remains elevated and that these order pushouts reflect the ongoing inventory digestion that our customers are experiencing, along with a general market slowdown affecting our customers in the quarter. Tigo also experienced a smaller number of unanticipated purchase order cancellations and returns, which negatively impacted the quarter's revenue to a lesser extent," said Zvi Alon, Chairman and CEO.

Tigo expects to release quarterly results on November 7, 2023.

Price Action: TYGO shares are down 19.87% at $5.97 on the last check Monday.