SolarEdge Technologies (NASDAQ:SEDG) saw its share price plummet over 21% in after-hours trading Tuesday after the company’s FQ1 revenue guidance significantly missed analysts’ expectations.
For the fiscal Q4, the smart energy technology company posted a loss per share of $0.92, which was narrower than the predicted loss of $1.34. Revenue came in at $316.04 million, missing the consensus projection of $324.2 million.
Moreover, the non-GAAP gross margin for the quarter stood at 3.3%, a significant decrease from 20.8% in the previous quarter and down from 30.2% in the same quarter the previous year.
Looking forward, SolarEdge's revenues to be in the range of $175 million to $215 million, substantially below the analyst estimates of $373.44 million.
The company forecasts that revenues from its solar segment will be between $160 million and $200 million.
The anticipated non-GAAP gross margin ranges from negative 3% to positive 1%, including an approximate 850 basis points impact from the net IRA manufacturing tax credit.
“Despite the challenges we faced in the second half of 2023, we concluded the year with $3.0 billion in revenue, just below 2022 levels,” said Zvi Lando, Chief Executive Officer of SolarEdge.
“The first half of 2023 included record installations and expectations for continued growth, with a shift in the second half of the year to a weaker market due to higher interest rates and lower power prices, which resulted in an inventory buildup that slowed our shipments.