Solar-Power Stocks Tumble After SolarEdge Warns of Slowing Installations
Solar stocks dropped after SolarEdge Technologies (SEDG), a U.S.-listed and Israel-based equipment maker, said clients in Europe had been “much slower” to install its equipment recently.
In early action: SolarEdge stock plunged around 26%, making it the worst performer in the S&P 500. Rival Enphase Energy (ENPH) dropped about 13%. It was the second -biggest decliner in the S&P 500. SunRun (RUN) fell more than 4% and SunPower (SPWR) lost around 8%.
Late Thursday, SolarEdge cut its guidance for third-quarter revenue and gross margin, and said revenues were likely to be substantially lower in the fourth quarter.
Chief Executive Zvi Lando said SolarEdge had seen “substantial unexpected cancellations and pushouts of existing backlog” from European distributors. The conflict in Gaza didn’t affect the guidance, Lando said.
Higher interest rates and increased costs have pressured the renewable-energy industry this year, and several European offshore-wind projects have been canceled.
Through Thursday’s close, SolarEdge shares had already fallen nearly 60% this year.
Deutsche Bank downgraded SolarEdge, SunRun and Sunnova stocks to “hold” from “buy” on Thursday.
