SolarEdge Plunges 24% After Q3 Guidance Misses Wall Street by 12%
SEDG sits 66% above its 52-week low of $23.01.
Summary
SolarEdge reported better-than-expected Q2 results with adjusted EPS of 5 cents and 20% revenue growth, but Q3 guidance fell well short of consensus. The company forecast revenue of $310M-$340M, a 12% miss at the midpoint versus the $368M Street estimate, with gross margin also light. Shares sank 24% to $36.90, the worst single-day drop in 14 months, erasing early-week gains that had pushed the stock above its 200-day moving average. William Blair analyst Jed Dorsheimer attributed the sell-off directly to the guidance shortfall. The broader solar sector also traded lower, with Enphase and Sunrun down 3% and 2.9% respectively. The guidance miss raises concerns about demand headwinds and margin pressure heading into the second half.
At the time of this announcement, SEDG was trading at $38.28 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $2.3B. The 52-week trading range was $23.01 to $81.25. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.