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SolarEdge Stock Plunges 30% After Weak Q3 Guidance Overshadows Surprise Profit and Drags Solar Sector Lower
['Mike Clair']
International Business Times Australia
Shares showed a partial rebound overnight, rising 2.04% to $34.59 as of 12:39 a.m. Eastern time Thursday, though the stock remained well below its pre-earnings level.
A Mixed Quarter With a Bright SpotSolarEdge reported second-quarter revenue of $346.2 million, up 19.6% from a year earlier and narrowly ahead of Wall Street's consensus estimate.
That guidance suggested to many analysts that SolarEdge's fragile recovery may remain uneven, undercutting the more encouraging signals from the quarter's underlying earnings performance.
Broader Solar Sector Feels the PressureSolarEdge's steep decline rippled across the broader solar industry Wednesday, with shares of several other major solar companies trading lower in sympathy.
The company's two-year annualized earnings-per-share growth rate of 59.9% has outpaced its longer five-year trend, an encouraging signal even as the company's earnings remain negative overall.