Maxeon Solar Technologies Stock Drops Over 30% in 2023 After Lowering Revenue Forecast Amid Slowing Solar Demand
Maxeon Solar Technologies has revised its 2023 revenue and earnings outlook downward due to weakening demand for solar products, influenced by rising interest rates, inventory surpluses, and regulatory changes in California.
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Key Highlights
- Maxeon Solar Technologies has lowered its 2023 revenue guidance to $1.25-$1.35 billion, down from $1.4-$1.6 billion, reflecting reduced solar product demand.
- Factors such as increased interest rates, large channel inventories, and California’s revised solar compensation policies have contributed to the sales decline.
- The company plans to shift focus towards corporate and industrial clients as residential solar demand weakens.
Shares of Maxeon Solar Technologies (MAXN) experienced a sharp decline of more than 30% following the announcement of a downgraded full-year forecast, signaling challenges in the solar market.
Based in Singapore, Maxeon now projects adjusted EBITDA between $80 million and $100 million, a reduction from the previous estimate of $95 million to $120 million.
CEO Bill Mulligan highlighted a significant slowdown in the global distributed generation market during the second quarter, attributing this to higher borrowing costs, excess inventory across the industry, and policy shifts in California that reduce incentives for residential solar installations.
The company missed its volume and revenue targets for the quarter and anticipates continued market difficulties through at least the third quarter, particularly in the residential segment. Consequently, Maxeon is redirecting its sales efforts to commercial and industrial sectors.
Following the update, Maxeon’s shares fell to their lowest level since July 2022, reflecting investor concerns over the solar industry’s near-term outlook.
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