Maxeon Solar Technologies (NASDAQ:MAXN) plunged in pre-market trading after the company announced preliminary Fiscal Q4 results that were below expectations. In the Fiscal fourth quarter, MAXN anticipates revenues of $229 million, indicating a 29.3% year-over-year decrease and falling short of Street estimates of $236.8 million.
Even more disappointingly, the company, which designs and manufactures photovoltaic panels, anticipates a shift to a $7 million loss compared to last year’s $21 million profit in the same period.
This was because Maxeon Solar announced that it incurred higher-than-expected restructuring costs in Q4 due to its ongoing “IBC capacity transformation.” This transformation involves ramping up the production of Interdigitated Back Contact (IBC) technology solar panels to boost energy conversion efficiency.
In Q1, MAXN is forecasting revenues of $186 million, which is lower than analysts’ estimates of $242.5 million, with expected total shipments of photovoltaic panels reaching 508 Megawatts (MW).
The company has not yet announced the date for its Q4 earnings.
Is MAXN a Good Stock to Buy?
Analysts remain sidelined about MAXN stock, with a Hold consensus rating based on two Holds and one Buy and one Sell each. Year-to-date, MAXN has tanked by more than 60%, and the average MAXN price target of $6.25 implies an upside potential of more than 100% at current levels.
