SMA Solar Technology Surprises with Unexpected Drop in Earnings but Holds onto Positive Outlook for Future Growth

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

Despite missing analyst expectations by 16%, SMA Solar Technology forecasts 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 as a whole. However, investors should be aware of potential risks as shares of SMA Solar Technology have dropped by 5.7% in the past week, and there are three warning signs for the company that should not be overlooked.

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