Power-One shares tumble on prediction of 4Q loss
CAMARILLO, Calif. (AP) — Shares of Power-One Inc. tumbled before Thursday's opening bell after the solar equipment maker forecast a loss and cut its revenue prediction for the fourth quarter, blaming lower-than-expected European demand.
The Camarillo, Calif.-based company expects to lose between $12 million and $15 million. It also projected revenue for the quarter of $190 million to $1.95 million, down from its previous outlook for $210 million to $230 million.
Analysts, on average, expected profit of $11.2 million and $221.1 million in revenue, according to FactSet.
The company said demand for its products was weaker than expected, mainly in Italy and Germany. The projection also included a loss of about $6 million on foreign currency remeasurement due to the strengthening of the euro versus the dollar late in the quarter.
"We continue to believe that Europe will be a major market for solar power over the long term, however, near-term demand will be more volatile as the market adjusts to the recent changes in photovoltaic incentives," CEO Richard Thompson said in a statement.
Solar companies have struggled for much of the past year amid tough economic conditions that have sent demand for their products down. At the same time, heavy competition has forced them to cut prices.
Power-One will report fourth quarter results on Jan. 31.
In premarket trading, Power-One shares fell 48 cents, or 11.1 percent, to $3.86.