SMA Solar Technology’s First Quarter 2024 Earnings Fall Below Expectations

SMA Solar Technology (ETR:S92) reported its First Quarter 2024 Results, with revenue at €361.8m, a decrease of 1.5% from 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 1Q 2023. The decline in margin was primarily due to higher expenses, leading to earnings per share of €0.82, down from €1.49 in 1Q 2023.

The company’s revenue and earnings missed analyst estimates by 16% and 27% respectively, indicating a challenging quarter. Looking ahead, revenue is forecasted to grow by 7.2% annually over the next 3 years, slightly lower than the 8.4% growth expected for the Semiconductor industry in Germany.

The performance of the German Semiconductor industry has been mixed, with SMA Solar Technology’s shares down 5.7% from the previous week. It’s important to consider the risks associated with investing in the company, as there are 3 warning signs that investors should be aware of, 2 of which are particularly concerning.

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