SMA Solar Technology Misses Analyst Expectations: Revenue and Earnings Decrease for Q1 2024
SMA Solar Technology (ETR:S92) released its First Quarter 2024 financial results, reporting revenue of €361.8m, a decrease of 1.5% compared to the same period in 2023. Net income was €28.5m, down 45% from the previous year, resulting in a profit margin of 7.9% compared to 14% in Q1 2023. The decline in margin was primarily due to higher expenses, leading to earnings per share of €0.82, down from €1.49 in Q1 2023.
The company’s revenue and earnings missed analyst estimates by 16% and 27%, respectively, indicating a challenging quarter for the German Semiconductor industry. Looking ahead, revenue is forecasted to grow by an estimated 7.2% annually over the next three years, slightly lower than the expected growth rate for the Semiconductor industry in Germany (8.4%).
SMA Solar Technology’s shares have declined by 5.7% from the previous week, reflecting mixed performance for the German Semiconductor industry as a whole. It’s important to consider the risks associated with investing in this company as there are three warning signs that investors should be aware of; two of which are particularly concerning.
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