What's Going On With SolarEdge Technologies Stock Thursday?

SolarEdge Technologies Inc SEDG shares are down Thursday after the company reported a year-over-year decrease in earnings and weak top-line results. Multiple analysts downgraded the stock following the print.

What Happened: SolarEdge said third-quarter revenue decreased 27% year-over-year to $725.3 million, which missed estimates of $768.38 million, according to Benzinga Pro. The company reported a quarterly loss of 55 cents per share, which was well below the 91 cents in earnings SolarEdge reported last year.

"The results for the third quarter fell short of our prior expectations and are reflecting a slow market environment, which has resulted in high inventory of our products in the distribution channels, in particular in Europe," said Zvi Lando, CEO of SolarEdge.

"While channel inventory clearing is expected to continue in coming quarters, we are optimistic about the future of the solar PV industry and are confident that our leading technology, global presence and broad product offering will enable us to continue to be a leader in this market."

SolarEdge said it expects fourth-quarter revenue to be between $300 million and $350 million. Adjusted gross margin is expected to be between 5% and 8%. 

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Analyst Assessment: Multiple analysts downgraded SolarEdge on Thursday.

• Truist Securities analyst Jordan Levy downgraded SolarEdge from Buy to Hold and lowered the price target from $120 to $70.
• BMO Capital analyst Ameet Thakkar downgraded SolarEdge from Outperform to Market Perform and set a price target of $68.
• Guggenheim analyst Joseph Osha downgraded SolarEdge from Buy to Neutral.

SEDG Price Action: SolarEdge shares were down 14.3% at $64.95 at the time of writing, according to Benzinga Pro.

Photo: PublicDomainPictures from Pixabay.