Why Construction Engineering Company Emeren Shares Are Sinking Today
Portfolio Pulse from Lekha Gupta
Emeren Group Ltd (NYSE:SOL) shares dropped over 9% after reporting Q3 FY23 results with revenue of $13.95 million, significantly missing the consensus estimate of $28.29 million. The decline of 42% Y/Y was attributed to delayed government approval for a solar project in Hungary. Despite this, gross profit increased to $5.7 million with a higher margin compared to the previous year. The company posted an adjusted EBITDA loss and a loss per ADS, both missing consensus estimates. Emeren's FY23 outlook anticipates lower revenue than expected but projects a net income and a gross margin within a specific range. SOL's stock price fell to $2.3807.
November 22, 2023 | 3:21 pm
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Emeren Group Ltd reported disappointing Q3 FY23 results with a significant revenue miss and a downward revision in FY23 outlook, leading to a 9% drop in stock price.
The stock price of Emeren Group Ltd is likely to face short-term downward pressure due to the reported revenue miss and lowered guidance for FY23, which are key indicators of the company's financial health and future performance. The significant deviation from consensus estimates typically results in negative investor sentiment and a decline in stock price.
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