Why SolarEdge Shares Are Up Premarket Today
Portfolio Pulse from Lekha Gupta
SolarEdge Technologies Inc (NASDAQ:SEDG) shares rose in premarket trading after announcing a 16% workforce reduction to decrease operating expenses and realign with market conditions. The cuts will impact approximately 900 employees, including 500 from manufacturing sites. The company has also ceased manufacturing in Mexico, reduced capacity in China, and ended its light commercial vehicle e-mobility activity. CEO Zvi Lando expressed confidence in the solar market's growth and the company's position. Further details are expected in the earnings release by the end of February 2024. In Q3, SolarEdge's revenue fell 27% Y/Y, missing estimates, and reported a loss per share compared to earnings last year. SEDG shares are up 6.50% at $73.60 in premarket trading.
January 22, 2024 | 10:40 am
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SolarEdge Technologies Inc's stock rose premarket after announcing workforce reductions and other cost-cutting measures, despite reporting lower Y/Y revenue and a quarterly loss in Q3.
The premarket stock price increase suggests a positive investor response to the cost-cutting measures, which may be seen as a way to improve financial stability and future profitability. However, the recent poor financial performance could temper long-term optimism.
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IMPORTANCE 85
RELEVANCE 100