SolarEdge Shares Plummet 20% Following Weak Third-Quarter Forecast

Shares of SolarEdge Technologies Inc fell more than 20% on Wednesday after the company issued a third-quarter revenue forecast of $310 million to $340 million. This guidance fell well short of Wall Street expectations, which ranged from $368 million to $371 million, triggering a broader sell-off in solar stocks including Enphase Energy and First Solar.

The weak outlook overshadowed a relatively strong second quarter. SolarEdge reported revenue of $346.2 million, representing a nearly 20% year-over-year increase. The company narrowed its GAAP net loss to $30.8 million, a significant improvement from the $124.7 million loss reported during the same period last year. This follows a disappointing first quarter that saw a loss of $0.43 per share.

CEO Shuki Nir described the second-quarter results as an important milestone in the company's turnaround. He attributed the growth to strong demand in Europe and the U.S. commercial and industrial sectors, which offset continued weakness in the U.S. residential market. Prior to the report, financial firms including TD Cowen and Wells Fargo had maintained cautious outlooks on the stock.