SMA Solar Technology (ETR:S92) has released its First Quarter 2024 financial results, with revenue at €361.8m, down 1.5% from the same period in 2023. The company’s net income was €28.5m, a decrease of 45% from the previous year, resulting in a profit margin of 7.9%, compared to 14% in 1Q 2023. This decline in profitability was primarily due to higher expenses, leading to earnings per share of €0.82, down from €1.49 in 1Q 2023.
SMA Solar Technology’s revenue and earnings missed analyst estimates by 16% and 27% respectively, indicating a challenging quarter for the company. Looking ahead, revenue is forecasted to grow by only 7.2% annually over the next three years, which is lower than the expected growth rate for the German Semiconductor industry of 8.4%.
The performance of the German Semiconductor industry has been mixed, with SMA Solar Technology’s shares down by an impressive -5.7% from the previous week alone. It is important for investors to be aware of certain risks associated with investing in this company, as there are three warning signs that should be taken into consideration before making any investment decisions. Two of these warning signs are particularly concerning and could potentially impact SMA Solar Technology’s future performance negatively.
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