What happened
Shares of SolarEdge Technologies (SEDG +3.06%), a smart energy-technology company, fell hard today after the company reported worse-than-anticipated second-quarter results that missed analysts' top-line consensus estimate.
As a result, the tech stock was down by 17.4% as of 12:59 p.m. ET on Wednesday.
So what
SolarEdge's revenue increased by 11% to $727.8 million in the quarter, which was better than Wall Street's consensus estimate of $725.2 million. But investors ignored the company's sales and instead focused on SolarEdge's adjusted earnings per share of $0.95, which were down from $1.20 in the year-ago quarter and far below analysts' average estimate of $1.39.
Image source: Getty Images.
Additionally, investors likely weren't happy to see that adjusted net income was down 22% to $55.7 million and operating expenses increased 35% in the quarter to $109.6 million.
CEO Zvi Lando acknowledged some headwinds in a press release, saying that the company faces "growing supply chain challenges, some related to our rapid growth in an environment of component shortages, and macro-economic trends as a result of our global footprint ... ," though Lando still believes the company can have sustainable growth.
NASDAQ: SEDG
Key Data Points
Now what
Management provided guidance for the third quarter, with sales expected to be in the range of $810 million to $840 million, which would be a 59% increase from the year-ago quarter at the midpoint of guidance.
But with the company's lackluster second-quarter results and SolarEdge potentially facing more supply chain issues, it's not surprising to see investors back away from the company's stock today.
