Solar Industry Headwinds Hit SolarEdge Hard: Q2 Results Disappoint
Portfolio Pulse from Lekha Gupta
SolarEdge Technologies, Inc. (NASDAQ: SEDG) reported disappointing Q2 FY24 results, with revenues of $265.4 million beating consensus but solar segment revenues down 75% Y/Y. Adjusted gross margin was 0.2%, and adjusted EPS loss of $1.79 missed expectations. The company sees Q3 revenue below consensus and continues to face headwinds. SolarEdge laid off 400 employees last month. Investors can gain exposure via Invesco Solar ETF (NYSE: TAN) and Global X Solar ETF (NASDAQ: RAYS).
August 08, 2024 | 1:13 pm
News sentiment analysis
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NEGATIVE IMPACT
Global X Solar ETF, which includes SolarEdge, may be impacted by SolarEdge's disappointing Q2 FY24 results and negative outlook for Q3.
As SolarEdge is a component of the Global X Solar ETF, its poor performance and outlook may negatively affect the ETF's price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
SolarEdge Technologies reported disappointing Q2 FY24 results with solar segment revenues down 75% Y/Y and adjusted EPS loss of $1.79 missing expectations. The company also laid off 400 employees last month.
The significant drop in solar segment revenues, missed EPS expectations, and negative outlook for Q3 are likely to negatively impact SolarEdge's stock price in the short term.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Invesco Solar ETF, which includes SolarEdge, may be impacted by SolarEdge's disappointing Q2 FY24 results and negative outlook for Q3.
As SolarEdge is a component of the Invesco Solar ETF, its poor performance and outlook may negatively affect the ETF's price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50