SolarEdge Cuts Guidance Amid Falling Demand in Europe, Shares Plunge

Solar power equipment provider significantly decreases Q3 predictions due to increased cancellations and backlog from European distributors, expecting revenue falls from between $880M-$920M to the new outlook of $720M-$730M.

SolarEdge Technologies, a solar power equipment provider, warns of lower-than-expected Q3 results due to a significant drop in its European business, with CEO Zvi Lando citing 'substantial unexpected cancellations and pushouts' of existing backlog from European distributors.
The company, headquartered in Israel, has reduced its Q3 revenue guidance from an initial $880-920 million to $720-730 million, signaling a significant fall in revenue due to decreased European demand.
The reduced guidance does not result from the ongoing Israel-Hamas conflict as stated by CEO Zvi Lando, but due to increased cancellations and slowed installation rates at the end of the summer and September.
The decrease in demand and piling inventory are affecting other firms in the industry, causing SolarEdge's shares and those of other solar sector companies to fall to their three-year low, with shares down over 30%.
Despite the challenges, SolarEdge's offices and facilities remain operational worldwide, providing uninterrupted manufacturing and customer support. The company is scheduled to release its financial report on November 1.