Solar Implosion: SolarEdge Melts Down After Weak Guidance

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

Second, solar stocks are being clubbed like a baby seal in US 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

Last month, SolarEdge adjusted its revenue forecast for the third quarter, citing high inventory levels and decreasing installations.

This situation resulted in significant order cancellations and a clearing of backlogged orders from its European distributors during the quarter.

Third Quarter Results

• Adjusted loss per share 55c vs. EPS 91c y/y, estimate EPS 95c
• Revenue $725.3 million, -13% y/y, estimate $732.6 million
• Gross profit $142.8 million
• Gross margin 19.7% vs. 26.5% y/y
• Operating expense $159.5 million, +47% y/y, estimate $130.3 million
• Sales and marketing expense $40.4 million, -5.6% y/y, estimate $43.8 million
• R&D expenses $80.1 million, estimate $82.1 million
• Adjusted net loss $31.0 million, estimate profit $47.1 million

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." 

Shares of SolarEdge crashed about 20%

SolarEdge's short interest soars. 

Also, SunPower Corp. shares are dropping 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, high inflation, high materials and labor cost environment. 

Sunrun shares slid 9%, 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. 

World's Largest Offshore Wind System Developer Abandons Two Major US Projects as Wind/Solar Bust Continues 

https://www.windtaskforce.org/profiles/blogs/world-s-largest-offsho...

APPENDIX 1

The wind/solar/battery bubble is in meltdown mode. This is not a surprise, because, the EIA makes LCOE “evaluations” of wind and solar, which purposely exclude major LCOE items, regarding:

Onshore grid expansion/reinforcement and very expensive battery system storage

A fleet of quick-reacting power plants for counteracting/balancing the variable output of wind/solar

Additional power plants for making up the electricity shortfall during low wind/solar conditions

Output curtailments during high wind/solar conditions, i.e., paying owners not to produce what they could have produced

Such EIA deceptions led to the national delusion wind and solar are competitive with fossil fuels, which is far from reality.

Wind and solar would not exist without at least 50% subsidies, plus they could not be fed into the grid, without the above four freebies

APPENDIX 2