SMA Solar Technology Reports Lower-than-Expected Earnings for First Quarter of 2024

SMA Solar Technology (ETR:S92) reported its first quarter 2024 financial results. The company’s revenue was €361.8m, down 1.5% from the first quarter of 2023. Net income decreased by 45% to €28.5m, resulting in a profit margin of 7.9%, down from 14% in the same period last year. The decline in margin was attributed to higher expenses, leading to earnings per share (EPS) of €0.82, down from €1.49 in the first quarter of 2023.

Analysts were disappointed as revenue missed estimates by 16% and EPS fell short by 27%. Looking ahead, SMA Solar Technology is forecasting an average annual revenue growth of 7.2% over the next three years, compared to an 8.4% growth forecast for the Semiconductor industry in Germany.

The German Semiconductor industry has also experienced a decline, with shares of SMA Solar Technology dropping by 5.7% in the past week. Investors are advised to consider potential risks, as there are 3 warning signs for the company that should not be overlooked.

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