The renewable energy industry is in full collapse mode this week. First, Orsted A/S, the world's largest offshore wind farm developer, abandoned two major US projects due to supply chain and interest rate impacts, and now solar stocks are being clubbed like a baby seal in US premarket trading on Thursday after solar equipment-makers SolarEdge and Sunrun reported dismal guidance amid waning demand.
Let's start with solar equipment maker SolarEdge Technologies. The company said current quarter revenues are expected between $300 million to $350 million, far below analysts' estimates of $718.9 million, as per Bloomberg Consensus data.
Fourth Quarter Forecast
Sees revenue $300 million to $350 million, estimate $718.9 million (Bloomberg Consensus)
Last month, SolarEdge adjusted its revenue forecast for the third quarter, citing high inventory levels and sliding installations. This situation resulted in significant order cancellations and a clearing of backlogged orders from its European distributors during the quarter.
Third Quarter Results
SolarEdge CEO Zvi Lando said in a Wednesday statement: "The results for the third quarter fell short of our prior expectations and are reflecting a slow market environment."
SolarEdge's short interest soars.
Also, SunPower Corp. shares are sliding in the premarket (down 4%) after it slashed its full-year guidance as earnings fell short of analysts' expectations on softer demand for solar panels.
"We are currently facing stormy seas," CEO Peter Faricy said on a conference call. Yet another 'green' company suffers from the higher interest rate environment.
And Sunrun shares slid 9% in premarket trading after reporting revenue for the third quarter that missed the average analyst estimate.
Meanwhile, President Biden's 'wind revolution' is blowing down as Orsted A/S reported this week that it has abandoned two major US projects due to supply chain and interest rate impacts. All those decarbonization targets won't be achieved if interest rates are higher for longer.
By Zerohedge.com
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