Leading solar energy company SolarEdge Technologies (NASDAQ:SEDG) has been suffering declining revenues despite growing momentum in energy transition and solar-industry tailwinds. So, given that the company’s solar shipments have fallen considerably, will it be able to survive the competitive landscape? Let’s find out.Based in Herzliya, Israel, SolarEdge Technologies, Inc. (SEDG) is a designer and seller of direct current optimized inverter systems for solar photovoltaic (PV) installations internationally. The stock’s price has climbed 68.4% over the past year thanks to an increase in demand for residential and commercial solar installers. However, the stock is currently trading 30.9% below its 52-week high of $377. Also, SEDG’s stock has slumped 19% year-to-date and nearly 8% over the past three months.
Although the company has been expanding its offerings by entering strategic partnerships and delivering powertrain kits for the e-mobility sector in Europe, it has failed to grow its revenues and profitability.
Moreover, for the second quarter of 2021, SEDG expects its non-GAAP gross margin to be within a 32% - 34% range. This represents a decline from a 36.5% non-GAAP gross margin in its last reported quarter. So, while SEDG’s peers are benefitting nicely from solar industry tailwinds, SEDG is still struggling to stay afloat.