Israeli Solar Energy Company SolarEdge technologies (Nasdaq: SEDG) saw its stock price drop 22% yesterday on Wall Street, as other renewable energy stocks fell sharply following the election of Donald Trump as the next US president. The Trump administration is not expected to encourage renewable energy.
After the close of trading, SolarEdge’s stock price fell another 22% in after-hours trading, following the announcement of third-quarter results. The company’s market cap currently stands at $840 million, a fraction of the $19 billion market cap at SolarEdge’s peak three years ago.
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Meanwhile, Chairman of the Board of Directors Nadav Zafrir, who becomes president next month Check Point Software Technologies Limited (Nasdaq: CHKP) The CEO decided to step down, although he initially talked about keeping both jobs. He will be replaced by veteran director Avery Moore.
SolarEdge is currently run by interim CEO and CFO Ronen Faier, and has been in crisis for more than a year due to its disappointing financial results. At its peak, distributors purchased large quantities of equipment due to high market demand. But demand has fallen while distributor inventories remain large, so they are buying much less SolarEdge. The inventory problem began in 2023 and remains unresolved two years later.
SolarEdge’s third quarter was particularly weak. The company reported revenue of $261 million, lower than analysts’ expectations of $269 million, and a fraction of the $725 million in revenue in the corresponding quarter of 2023.
GAAP net loss was $1.21 billion, compared to a GAAP net loss of $130.8 million in the prior-year quarter and a GAAP net loss of $61.2 million in the corresponding quarter last year.
Non-GAAP net loss was $874.3 million, compared to a non-GAAP net loss of $101.2 million in the prior quarter and a non-GAAP net loss of $31 million in the corresponding quarter. From last year.
“As SolarEdge faces this challenging period in the company’s history, we are diligently pursuing three key priorities: financial stability, regaining market share, and refocusing on our core solar and storage opportunities,” said Fire. “We are grateful for our passionate and dedicated workforce and proud of our leadership.” In the field of technological innovation, I am confident that all of this will return the company to a profitable growth path.
Published by Globes, Israel Business News – en.globes.co.il – on November 7, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.
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