SolarEdge's stock tanks 22% after company swings to surprise loss, revenue drop

Shares of SolarEdge Technologies Inc. (SEDG) dropped more than 20% in the extended session Wednesday after the solar-power company swung to a surprise loss in the third quarter, saying it faced a slowdown in solar installations, and called for sharply lower sales in the current quarter. SolarEdge lost $61.2 million, or $1.08 a share, in the quarter, contrasting with net earnings of $24.7 million, or 43 cents a share, in the year-ago quarter. Adjusted for one-time items, the company lost 55 cents a share. Revenue dropped 27% to $725.3 million. Analysts polled by FactSet expected SolarEdge to report adjusted earnings of 31 cents a share on sales of $724 million. "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," Chief Executive Zvi Lando said in a statement. The company guided for fourth-quarter revenue between $300 million and $350 million. The FactSet consensus calls for revenue of $714 million. Shares of SolarEdge ended the regular trading day down 0.2%.

-Claudia Assis

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11-01-23 1705ET

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