Solaredge With Slump in Sales - Negative Result - Share on a Rollercoaster
ArrMilpitas, USA - Solaredge Technologies has announced its financial results for the third quarter of 2023 (Q3 2023). As expected, the inverter specialist recorded a significant slump in sales and earnings. Solaredge also disappointed investors with its outlook for the fourth quarter. The share slumped on Wednesday, but was able to recover yesterday.
At USD 676.4 million, the majority of total revenue is attributable to the solar segment (Q3 2022: USD 788.6 million). The gross margin in the solar sector amounted to 24.0% in Q3 2023 and was therefore lower than in the same quarter of the previous year (Q3 2022: 28.3%).
The operating result on a GAAP basis was also within the profit warning range (USD -9 million to USD -28 million) with a loss of USD 16.7 million. The bottom line is a net loss of USD 61.2 million in Q3 2023, after a profit of USD 24.7 million in the third quarter of 2022.
Overall, the company shipped inverters with a total capacity of 3.8 gigawatts and batteries with a storage capacity of 121 MWh (Q3 2022: 2.7 GW / 320.7 MWh).
"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", commented Solaredge CEO Zvi Lando on the quarterly figures. Looking ahead, the Management Board expects the reduction in inventories in the sales channels to continue in the coming quarters. "However, we are optimistic about the future of the solar PV industry and are confident that our leading technology, global presence and broad product offering will enable us to continue to be a leader in this market", Lando continued.
For the fourth quarter (October - December 2023), Solaredge expects revenue to be in the range of USD 300 to 350 million. The solar segment is expected to account for between USD 275 million and USD 320 million of this. Group-wide, Solaredge expects a gross margin of 5 to 8 percent; for the Solar segment, Solaredge expects a figure of between 7 and 10 percent.
The RENIXX Group's share price slumped by 24.5% to EUR 54.12 on Wednesday (closing price, November 1, 2023, Stuttgart Stock Exchange). However, the share was able to recover in yesterday's trading and make up for the losses. At the end of the day, the RENIXX Group's shares were up 25.8% at a price of EUR 68.10 (closing price, 02.11.2023, Stuttgart Stock Exchange).
Source: IWR Online, 03 Nov 2023
