Earnings
Home›Earnings›Results›SolarEdge shares fall after Q2 beat, but guidance disa…
SolarEdge shares fall after Q2 beat, but guidance disappoints
SolarEdge reported $346.2 million in Q2 revenue, up 19.6% year over year, but its top-end revenue outlook for the current quarter came in at $340 million.
SolarEdge (SEDG) posted better-than-expected Q2 results, but its shares plunged Aug. 5 as investors focused on forward guidance that failed to meet expectations. The company recorded $346.2 million in revenue, a 19.6% year-over-year increase, and reported earnings of $0.05 per share, compared with a loss of $0.81 per share in the year-ago quarter, according to Yahoo Finance.
Despite the quarter-over-quarter improvement, investors sold the stock after SolarEdge projected revenue of $340 million at the top end of its current-quarter range, notably below analysts' forecast of nearly $370 million. The guidance implies a sequential decline, reflecting ongoing weakness in the U.S. residential solar market.
SolarEdge also reported a GAAP loss of $0.50 per share, which added pressure in a period when some investors are already concerned about tightening gross margins. The outlet also notes the company has historically closed both September and October in the red, a seasonal pattern that can weigh on near-term sentiment.
Still, Yahoo Finance said SolarEdge showed some signs of improvement, including more than doubling European revenue year over year in Q2 and resilience in U.S. commercial and industrial demand. The article points to the recent launch of its Nexis platform as longer-term potential, while arguing that higher-for-longer interest rates and regulatory headwinds leave near-term revenue visibility unclear.