SMA Solar Technology revises full-year guidance, shares surge 11%

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SMA Solar Technology revises full-year guidance, shares surge 11%
Credit: © Reuters.

In a bullish turn of events on Thursday, SMA Solar Technology saw an 11% surge in its share price to EUR62.20, following an upward revision of its full-year guidance. The upward adjustment comes on the heels of a robust Q3 performance by the German solar supplier.

The company now anticipates sales to be in the range of €1.8 billion to €1.9 billion, a significant increase from the original forecast of €1.7 billion to €1.85 billion. The revised sales projection aligns with the InvestingPro Tip that analysts anticipate sales growth for the company in the current year. In addition, the projected EBITDA has been substantially hiked to between €285 million and €325 million from the initial estimate of €230 million to €270 million.

Preliminary figures for Q3 suggest a notable increase from the previous year's revenue of €252 million and EBITDA of €34 million. According to InvestingPro data, the company's revenue growth for Q2 2023 was 41.99%, with a quarterly growth of 63.86%, indicating a strong upward trend. The detailed nine-month results are scheduled for release on November 9, 2023.

Despite the recent surge, InvestingPro data shows that the company's stock has taken a significant hit over the last three months, with a total return of -43.56%. This aligns with the InvestingPro Tip that the stock has fallen significantly over the same period. However, the company's strong revenue growth and the expectation of net income growth this year, another InvestingPro Tip, may serve as positive indicators for investors.

SMA Solar Technology also boasts a healthy balance sheet, holding more cash than debt, a fact that aligns with another InvestingPro Tip. The company's market cap stands at $2230.41 million, and it has a P/E ratio of 12.44, reflecting its profitability over the past twelve months.

This news article is based on information provided by Helena Smolak, who can be contacted at helena.smolak@wsj.com for further details. For more insights and helpful tips, consider subscribing to InvestingPro, which offers a wealth of additional tips for investors. For more information, visit InvestingPro Pricing.

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