Why SolarEdge Stock Crashed by as Much as 36.5% Today
Shares of solar energy leader SolarEdge Technologies (NASDAQ: SEDG) had an absolutely brutal morning on Friday, crashing by as much as 36.5% in early trading. Shares were still down by 29.8% at 11:59 a.m. ET, and showed no signs of making a significant recovery.
The main driver of that downward movement was the company's release of preliminary third-quarter results on Thursday evening. Management said it now expects to report revenue of $720 million to $730 million for the period, well below its previous guidance range of $880 million to $920 million. Non-GAAP gross margin is also expected to be 20.1% to 21.2%, well off the 28% to 31% guidance range. It even expects a GAAP operating loss of $9 million to $28 million.
The company blamed those poor results on cancellations and pushouts of orders from customers in Europe, but what we're ultimately seeing is that demand for rooftop solar systems weakened as interest rates rose, and as consumers around the world now have less available money to spend on large home upgrades.
Source Fool.com
