SolarEdge Drops More Than 20% as Writedown, Forecast Disappoint

image is BloomburgMedia_SMJS8MT1UM0W00_07-11-2024_11-00-07_638665344000000000.jpg

A Solarpro employee installs a SolarEdge Technologies Inc. inverter at a residential property in Sydney, Australia, on Monday, May 17, 2021. Australia is the global leader in generating electricity from the sun. Some 27% of buildings had a solar system on their roof at the end of 2020, the highest proportion in the world, according to figures from BNEF. Photographer: Brendon Thorne/Bloomberg

SolarEdge Technologies Inc.’s shares plunged more than 20% after the solar-equipment maker took a $1 billion writedown and warned margins for the current quarter will be non-existent or even negative. 

Third-quarter sales and per-share profit underperformed analysts’ estimates, according to a statement Wednesday. Current-quarter revenue also will fall below expectations, the company said.

The shares fell 22% to $14.675 in New York, extending the year-to-date loss to 84%. Even for a historically volatile stock like SolarEdge, Wednesday’s decline was significant, representing a shift of more than two standard deviations.

The company attributed the $1.03 billion writedown to the declining value of various assets after a valuation analysis. 

©2024 Bloomberg L.P.

By Mark Chediak

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