What happened
Shares of SolarEdge Technologies (SEDG -2.31%), 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.
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.
