Maxeon (NASDAQ:MAXN) shares plunged about 25% in premarket Friday following the company's reported Q2 results.
Revenue of $348.4 million came in worse than the consensus estimate of $378.23M. EPS was ($0.03), compared to the consensus estimate of ($0.07).
"The demand environment in the global distributed generation (DG) market weakened significantly in late-Q2 due to the combined effect of higher interest rates, the impact of policy disruption in California, and significant channel inventory industry-wide. Our DG sales team was able to deliver on-plan ASP and gross profit but came in short of target on volume and revenue,” said CEO Bill Mulligan.
For Q3/23, the company expects revenue in the range of $280M-$320M, missing the consensus estimate of $395.3M (NYSE:MMM). Adjusted EBITDA is seen at $2M-$12M.
For the full year, the company anticipates revenue in the range of $1.25B-$1.35B, worse than the consensus of $1.51B. Adjusted EBITDA is seen at $80M-$100M.
Goldman Sachs analysts remain Buy-rated on the stock, "but acknowledge near-term DG demand and the ongoing dispute with SPWR would be key focus areas into 2H23."
The analysts cut the price target by $6 to $37 per share.
(Additional reporting by Senad Karaahmetovic)