SolarEdge Technologies Stock Sinks On Q3 Earnings, Company Tussles With 'Slow Market Environment'

SolarEdge Technologies Inc SEDG shares are trading lower in Wednesday's after-hours session after the company reported a significant decline in earnings and worse-than-expected revenue results

Q3 Earnings: SolarEdge reported third-quarter revenue of $725.3 million, which was down 27% year-over-year and came in below 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 from last year. Adjusted gross margin came in at 20.8%, down from 27.3% year-over-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."

Outlook: SolarEdge expects fourth-quarter revenue to be in the range of $300 million to $350 million, far less than the $692 million estimate. Adjusted gross margin is expected to be between 5% and 8%. 

A conference call to discuss these results kicked off at 4:30 p.m. ET. 

See Also: First Solar Stock Is Heating Up Today: What's Going On?

SEDG Price Action: SolarEdge shares were down 22.1% at $59.08 at the time of publication, according to Benzinga Pro.

Photo: Leopictures from Pixabay.

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