Israeli solar energy company SolarEdge Technologies (Nasdaq: SEDG) has seen its share price hit a five-year low earlier this week after its US rival Enphase published its financial results showing a slower than expected recovery in the industry.
SolarEdge's share price fell to $55, giving a market cap of $3.2 billion. The share price has since recovered slightly to $57.86 but is still down nearly 40% since the start of the year. At its peak in late 2021, SolarEdge's share price was $364, giving a market cap of over $20 billion, making it for a brief while Israel's most valuable publicly traded company. Since then the share price has plunged 85%.
SolarEdge, managed by CEO Zvi Lando, develops and markets solutions for the solar energy industry including inverters, optimizers and batteries and communications devices for monitoring solar energy systems. Its rival Enphase, which operates in the same sector and focuses mainly on the North American market, has seen its share price fall 70% since its peak in 2022 and 23% since the start of 2024, and currently has a market cap of $15.4 billion.
SolarEdge will publish its first quarter 2024 results on May 8 and according to its guidance expects revenue of $175-215 million compared with $944 million in the corresponding quarter of 2023 and $316 million in the fourth quarter of 2023. The forecast for non-GAAP gross profit is -1% to -3% and 1%-5% in the solar energy sector.
SolarEdge's revenue has been hit by excess inventory with distributors (who overstocked due to supply chain concerns in previous years) and lower than usual demand. The company expects distributors' inventory levels to fall in the second quarter of the year.
Published by Globes, Israel business news - en.globes.co.il - on April 25, 2024.
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