SMA Solar Technology’s First Quarter 2024 Results Miss Analyst Expectations by 16% and 27%, as German Semiconductor Industry Struggles

SMA Solar Technology (ETR:S92) released its First Quarter 2024 Results, reporting revenue of €361.8m, a 1.5% decrease 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 for the German Semiconductor industry as a whole. Looking ahead, revenue is forecasted to grow by only 7.2% annually over the next three years, slightly lower than the expected growth rate of the industry in Germany at an estimated rate of 8.4%.

The performance of SMA Solar Technology’s shares has been mixed, with a decrease of -5.7% from the previous week. It is crucial to be aware of the risks associated with investing in this company and take note of three warning signs that investors should be mindful of – two of which are particularly concerning for potential investors considering investing in this stock.

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