MILPITAS, Calif. - SolarEdge Technologies Inc . (NASDAQ:SEDG) shares tumbled 16% in after-hours trading Wednesday after the solar energy company reported a wider-than-expected third-quarter loss and issued weak guidance for the fourth quarter.
The company posted an adjusted loss of $15.33 per share for Q3, significantly worse than the $1.65 loss analysts had forecast. Revenue fell 64% YoY to $260.9 million, missing estimates of $272.8 million.
SolarEdge's outlook for Q4 also fell short of expectations. The company projects revenue between $180 million and $200 million, well below the $309.2 million consensus. It expects a non-GAAP gross margin between negative 4% and 0%, including a 1,000 basis point benefit from IRA manufacturing tax credits.
"As SolarEdge weathers this difficult period in the Company's history, we are diligently pursuing three main priorities: financial stability, recapturing market share and refocusing on our core solar and storage opportunities," said Ronen Faier, Interim Chief Executive Officer.
The disappointing results and guidance reflect ongoing challenges in the solar industry, including high interest rates and excess inventory. SolarEdge took a $1.03 billion impairment charge in Q3 related to asset write-downs.
For Q4, SolarEdge expects solar segment revenue of $170 million to $190 million with gross margins between 0% and 3%. The company shipped 850 megawatts of inverters in Q3, down from higher levels earlier in the year.
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