Advanced Energy Industries (NASDASQ:AEIS) lowered its second-quarter profit outlook and predicted earnings would fall to the low end of its estimated range due to weaker-than-expected performance in its renewables business.
The Fort Collins, Colo.-based maker of power and control technologies for thin-film manufacturing and high-growth solar-power generation now expects revenues in the range of $137 million to $140 million, below its earlier view in May between $148 million and $160 million.
Analysts polled by Thomson Reuters are currently anticipating sales of $157 million.
Earnings are projected to come in at the low end of, or slightly lower than, the range it projected on May 2 of 36 cents to 44 cents a share. Wall Street is expecting earnings of about 42 cents.
The guidance reflects weaker performance in its renewables business that could not be offset by modest results in its thin-film unit.
Our results were primarily impacted by changing solar market conditions driven by panel price declines, short lead-times for components, and permitting and financing delays, Advanced Energy CEO Dr. Hans Betz said in a statement.
The trends, he said, have been causing some customers to postpone purchases until panel prices stabilize.
The company also blamed changing incentive programs in certain regions and increasing competition.