SEDG makes the inverters that transform direct current into alternating current. If they have a hiccup you know the whole chain, polysilicon to cells to panels to installers are also seing problems.
From TheStreet, Oct. 20:
Solar stocks are plunging here on Friday morning after preliminary data indicated that SolarEdge Technologies (SEDG) will miss its third-quarter revenue and operating income guidance in a big way. SolarEdge has been under selling pressure since March and its shares are down around 75% from their high this year. Let's check out the charts of Sunrun (RUN) , which has seen a more orderly decline in the past year.
In this daily bar chart of RUN, below, I can see that prices have weakened from a high made in December. Prices trade below the declining 50-day moving average line and below the declining 200-day line. The trading volume has been more active since March and tells me that more and more traders and investors are voting with their feet and selling RUN. The math-driven On-Balance-Volume (OBV) line has been weak the past year as sellers of RUN have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator has been trying to stabilize since late August but it remains below the zero line in sell territory.
SolarEdge Announces Preliminary Financial Results; Will Announce Financial Results for the Third Quarter 2023 on Wednesday, November 1, 2023
MILPITAS, Calif.--(BUSINESS WIRE)--Oct. 19, 2023-- SolarEdge Technologies, Inc. (Nasdaq: SEDG), a global leader in smart energy technology, today provided selected preliminary unaudited financial results for the third quarter ended September 30, 2023.
“During the second part of the third quarter of 2023, we experienced substantial unexpected cancellations and pushouts of existing backlog from our European distributors,” said Zvi Lando, Chief Executive Officer of SolarEdge. “We attribute these cancellations and pushouts to higher than expected inventory in the channels and slower than expected installation rates. In particular, installation rates for the third quarter were much slower at the end of the summer and in September where traditionally there is a rise in installation rates.”
As a result, third quarter revenue, gross margin and operating income will be below the low end of the prior guidance range. Additionally, the Company anticipates significantly lower revenues in the fourth quarter of 2023 as the inventory destocking process continues.
“The adjusted guidance is unrelated to the tragic events that have unfolded in Israel. While there has been some impact on daily routines at our headquarters, our offices and facilities are open worldwide, including in Israel, and we are manufacturing and providing customer support without interruption,” added Lando.
Third quarter revenue is now expected to be in the range of $720 million to $730 million, compared to the previous expectation of $880 million to $920 million.
GAAP gross margin is now expected to be within the range of 19% to 20%.
Non-GAAP gross margin* is now expected to be within the range of 20.1% to 21.1%, compared to the previous expectation of 28% to 31%.
GAAP operating loss is now expected to be within the range of $9 million to $28 million....
....MORE
First Solar is actually up a bit, $152.83+0.86.
September 21's "First Solar Urges US to Get Tough on Trade as Module Prices Sink" (FSLR)" had some of our recent FSLR links including:
"First Solar, The Poster Child For Solar Subsidies Has Had An Awful Month (FSLR)":
As the Wall Street Journal noted on July 31:
The U.S. Clean-Energy Company That Hit the Subsidies Jackpot
Of all the beneficiaries of the U.S.’s green-energy push, few have hit the jackpot like First Solar. The Arizona-based solar-panel manufacturer expects to receive as much as $710 million this year—nearly 90% of forecast operating profit—from subsidies the U.S. government rolled out a year ago to encourage domestic renewables production. One analyst estimates the incentives could be worth more than $10 billion for the company over the next decade. . .
The company’s shares have more than doubled to $208.40 in Friday trade since the beginning of 2022, despite a string of earnings disappointments during that period....
Which led yours truly to opine (a few minute to the open on Aug. 25, previous close $174.42):
So, not exactly gamboling across the greenswards but perhaps searching for a bottom.As can be seen, the stock traded at $224.50 on July 28.
After the $50.08 (22.3%) decline the stock might be offering itself up for a trade to the long side but not today. In pre-market action the stock can only muster a 33 cent uptick on a day when all three major index futures are up going into the open.
FSLR will be reporting earnings in October so somewhere in the Aug. 28 - Oct. 26 time frame there should be an opportunity but we have no interest on JPow speech day and/or until the stock can find a bottom.
And Maybe close to finding one right around $150:
...Looking at the five-year chart (from BigCharts) you can see why they didn't hold any "Analyst Days":
