SolarEdge Technologies NASDAQ:SEDG led a broad decline among solar stocks Wednesday after its forecast for third-quarter revenue came in below Wall Street expectations, overshadowing better-than-expected second-quarter earnings.
SolarEdge shares fell more than 20% in Wednesday trading. The decline also weighed on other solar names, with First Solar NASDAQ:FSLR, Enphase Energy (ENPH), Fluence Energy NASDAQ:FLNC, Array Technologies (ARRY) and Sunrun (RUN) also trading lower.
SolarEdge reported a second-quarter net loss of $30.8 million, or 50 cents a share, compared with a loss of $124.7 million, or $2.13 a share, a year earlier. Revenue increased 19.6% to $346.2 million, while gross margin improved to 27.5% from 11.1%.
The outlook was less encouraging. SolarEdge expects third-quarter revenue between $310 million and $340 million, below the $368 million analyst consensus. The company also projects gross margin of 22% to 26%, pointing to continued pressure on profitability.
The latest move leaves investors weighing SolarEdge's improved recent results against a forecast that suggests the recovery may remain uneven. The company's shares had gained 27% this year before Wednesday's selloff.