Shares of solar and smart energy technology companies SolarEdge technology (NASDAQ: SEDG) fell 25% when the market opened today after the company reported earnings yesterday evening. Shares are still down 22% as of 10:30 a.m. EST.
The company beat earnings estimates, but revenue fell QoQ, and the company’s guidance required another report of lower revenue in the fourth quarter.
Results from soaring solar stocks sent at least three analysts down today.
SolarEdge reports revenue down 18% q-o-q, and the midpoint guidance for Q4 will be down 15% for the three-month period ending December 31, 2020.
Compare, competitor Energy Enphase (NASDAQ: ENPH) recently reported 3Q revenue a 1% drop from Q3 2019 and giving guidance implies that fourth-quarter sales were up 20% y-o-y.
So what now
The report from SolarEdge prompted analysts from JP Morgan, Susquehanna and B. Riley to cut their price targets for the company today. Even as it is now, shares of SolaEdge have more than doubled since the beginning of 2020.
Another analyst, Gus Richard from Northland Capital, downgraded the company’s rating to inefficiency today, saying that he “can’t come up with a case for a higher multiple without increasing the number. “
SolarEdge touts growth in Europe and says its solar business outside the US has reached an all-time high. However, investors feared that the company was losing its foothold in the US solar panel microinverter market, taking profits today after stocks surged.