SMA Solar Technology (ETR:S92) reported its first quarter 2024 financial results, revealing a decline in revenue and net income compared to the same period last year. The company’s revenue was €361.8m, down 1.5% from the first quarter of 2023, while net income decreased by 45% to €28.5m, resulting in a profit margin of 7.9%, down from 14% in the same period last year. Analysts were disappointed as revenue missed estimates by 16%, and EPS fell short by 27%.
Looking ahead, SMA Solar Technology is forecasting 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. However, this growth rate falls below that of the industry as a whole, which may indicate challenges for the company’s future success.
The German Semiconductor industry has also experienced a decline, with shares of SMA Solar Technology dropping by 5.7% in the past week. Investors are advised to consider potential risks associated with these developments and keep an eye on warning signs that could impact SMA Solar Technology’s performance moving forward.
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Overall, SMA Solar Technology reported disappointing financial results for Q1-2024 with lower revenue and higher expenses leading to lower profit margin than expected . While the company is projecting positive growth over next three years it lags behind semiconductor industry overall growth rate which may indicate challenges ahead . It is important for investors to keep an eye on warning signs that could impact SMA solar technology’s future performance moving forward.
