Power-One Shares Drop On Revised Estimate
Two weeks before the inverter manufacturer is schedule to release its Q4 earnings, Power-One (PWER :NASDAQ) released a statement today saying there would be a loss while lowering their revenue prediction.
Analysts had been predicting a profit of $11.2 million but Power-One now expects to lose between $12 million and $15 million in Q4 2012. Revenues were predicted to be between $210 million and $230 million, now the company believe they will come in between $190 million and $195 million.
Waning demand for its inverters in Europe is being blamed for the revised numbers. Specifically, diminishing demand in historically strong solar markets, including Italy and Germany, is being blamed for the unwelcome news.
2012 has been a punishing year for solar manufacturers but many are hoping that strong Q4 numbers would help continue to push the industry out of its flagging share prices.
Many solar manufacturers have cut their prices due to the decreased demand for their products and the increased competition within the industry. This would help explain the decline in revenues but most companies have undertaken cost-cutting measures to return their profits.
Shares of Power-One were down 8.7 percent in afternoon trading.