Shares of SolarEdge Technologies Inc. fell. fell more than 14% in the extended session Tuesday after the maker of inverters and other solar equipment reported quarterly sales that fell more than 60% and headed toward lower sales, the latest reminder of the solar industry's ongoing decline.
Falling demand amid rising interest rates and regulatory changes in California, as well as rising inventories, have devastated the solar energy and related industries, and just last month SolarEdge embarked on a cost-cutting plan and announced layoffs in an attempt to right itself.
The company swung to a surprise loss last quarter, saying it was navigating a “slow market environment.” Q4 earnings were mixed, but guidance also disappointed Wall Street.
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The company lost $162.4 million, or $2.85 per share, in the fourth quarter, compared to profits of $21 million, or 36 cents per share, in the same quarter last year.
Adjusting for one-time items, SolarEdge lost 92 cents per share. Analysts surveyed by FactSet were looking for an adjusted loss of $1.34 per share.
Revenue fell 65% to $316 million, from $891 million last year. This includes revenue of $282 million for the solar segment, down 66% from the prior quarter's revenue.
Analysts surveyed by FactSet expected SolarEdge to report revenue of $323 million in the quarter.
The gross profit margin from the solar sector decreased to 4%, compared to 24% in the previous quarter and 32.4% in the same quarter last year.
SolarEdge guided for first-quarter revenue in the range of $175 million to $215 million, and gross margins of between negative 3% and positive 1%.
The FactSet consensus is calling for first-quarter revenue of $374 million.
SolarEdge shares have lost 72% in the past 12 months, in contrast to a gain of about 22% for the S&P 500 SPX and compared to a loss of about 40% for the Invesco Solar ETF TAN in the same period.
