SolarEdge Technologies (NASDAQ:SEDG) shares plunged more than 19% after-hours following the company’s reported preliminary financial results for Q3.
The revenue for the quarter is now seen at $720-$730 million, down from the previous expectation of $880-$920M, compared to the consensus estimate of $909.02M.
“During the second part of the third quarter of 2023, we experienced substantial unexpected cancellations and pushouts of existing backlog from our European distributors. We attribute these cancellations and pushouts to higher than expected inventory in the channels and slower than expected installation rates,” said CEO Zvi Lando.
Management also expects significantly lower revenues in Q4 as the inventory destocking process continues.