SolarEdge Stock Plunges After The Close: What's Going On?

SolarEdge Technologies Inc SEDG shares are trading lower in Tuesday's after-hours session on the heels of the company's second-quarter financial results. Weak third-quarter guidance appears to be driving shares lower. 

• Q2 Revenue: $991.3 million beat estimates of $989.17 million
• Q2 EPS: $2.62 beat estimates of $2.55

GAAP gross margin came in at 32%. GAAP operating income totaled $150.4 million.

SolarEdge said it shipped 4.3 Gigawatts (AC) of inverters during the quarter and 269 MWh of batteries.

The company ended the quarter with cash, equivalents, bank deposits, restricted bank deposits and marketable securities of $853.5 million.

"We are pleased with our results for the second quarter, in particular our strong performance in Europe in both the residential and commercial solar segments," said Zvi Lando, CEO of SolarEdge.

"While the U.S. residential solar market is currently seeing some headwinds primarily related to higher interest rates, we are navigating through this period by leveraging our geographic and multi-segment strengths in the solar markets and expect to benefit from the positive long-term outlook for this sector."

Outlook: SolarEdge said it expects third-quarter revenue to be in the range of $880 million to $920 million versus estimates of $1.05 billion. Adjusted gross margin is expected to be between 28% and 31%. 

See Also: Pinterest Stock Pulls Back On Q2 Results: EPS Beat, Revenue Tops Estimates As Global Users Jump 8%

SEDG Price Action: SolarEdge shares were down 11.2% after hours at $212.61 at the time of publication, according to Benzinga Pro.

Photo: PublicDomainPictures from Pixabay.