Array Technologies (ARRY) - Get Report on Wednesday lost a third of its market value after the solar-energy-products company withdrew its annual guidance, sparking several analysts to reduce their ratings and cut their price targets.
Shares of the Albuquerque, N.M., company at last check were off 35.4% at $16.11. On Wednesday they touched a 52-week low $16.22, down 35%.
Array went public in October at $22 a share. It had said in a regulatory filing that it intended to raise $675 million in its initial public offering.
Array Technologies late Tuesday reported net income of $2.9 million, or 2 cents a share, down from $73.7 million, or 61 cents, in the year-earlier quarter. Adjusted earnings came to 19 cents a share, missing the FactSet consensus of 20 cents.
Revenue totaled $245.9 million, down 44% from a year earlier but still ahead of the FactSet consensus of $238.8 million.
The revenue drop was largely due to a reduction in the amount of investment tax credit safe harbor-related shipments, the company said.
"Given the continuing increases we are seeing in steel and freight costs as well as our ongoing review of open contracts to assess what costs we will pass on to customers, we are not able to affirm our previously provided guidance for the full year," Chief Financial Officer Nipul Patel said in a statement.
In response, Roth Capital analyst Philip Shen downgraded Array Technologies to neutral from buy with a price target of $25, down from $53.
The company removed its 2021 guidance until it can finish its review of 100 "open contracts to assess what costs [it] will pass on to customers," Shen said in a research note, according to the Fly.
With "skyrocketing" steel and freight costs, Shen said he expects shares of Array to remain weak until visibility on input costs, volumes and margins normalizes.
Barclays analyst Moses Sutton double downgraded the company to underweight from overweight and halved his price target to $16.
The analyst said that with "fresh concerns" around Array's margins, volumes, earnings power, headwind length, and "limited ability to control its destiny," investors have no case to chase the stock or even "place it in a neutral position within their portfolio."
In addition, Piper Sandler analyst Kashy Harrison downgraded Array Technologies to neutral from overweight with a price target of $27, down from $53.