Shares of Array Technologies (ARRY), a leading provider of solar tracking solutions, plummeted 21% to $14.44 on Wednesday. This significant decline marks the largest one-day percent decrease since May 12, 2021, when the stock fell 46%. The company’s weaker-than-expected outlook reflects the ongoing challenges facing the solar energy industry.
Array announced Tuesday evening that it anticipates full-year revenue in the range of $1.525 billion to $1.575 billion. This projection falls below Wall Street’s estimate of $1.622 billion, according to FactSet data. In light of short-term project delays caused by customer pushouts, CEO Kevin Hostetler explained the reduced revenue outlook for the full year.
The broader solar industry has been grappling with difficulties recently, largely due to high interest rates that have made it more difficult for consumers to finance solar installations. Array’s stock has seen a decline of 26% this year, including Wednesday’s drop. First Solar (FSLR) has dropped 8.4%, while SunRun (RUN) has seen a colossal 58% decrease.
Array reported adjusted earnings of 21 cents per share for the third quarter, surpassing analysts’ expectations of 14 cents. However, its revenue fell short at $350.4 million compared to estimates of $375.1 million. Despite this setback, Hostetler expressed optimism about positive momentum in demand heading into 2024.
Guggenheim analysts Joseph Osha and Hilary Cauley have revised their earnings and revenue estimates for this year and next. They still recommend buying Array stock but have lowered their price target from $36 to $30 in their Wednesday report.