What Happened?

Shares of solar tracking systems manufacturer Array (NASDAQ:ARRY) fell 21.4% in the afternoon session after the company reported weaker than expected fourth quarter 2024 results, with EBITDA missing Wall Street's estimates and full-year guidance coming in significantly below expectations, not exactly what investors wanted to see. 

On the plus side, the company offered a strong revenue outlook for next quarter, beating analysts' forecasts. Management is projecting over 20% year-on-year growth in 2025, backed by a solid order backlog and rising demand for its solar tracking solutions. Overall, earnings shortfalls and macro challenges made this a weaker quarter, but if the company can execute well, that bullish revenue guidance suggests some potential upside ahead.

The shares closed the day at $5.28, down 19.4% from previous close.

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What The Market Is Telling Us

Array’s shares are extremely volatile and have had 62 moves greater than 5% over the last year. But moves this big are rare even for Array and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 7 months ago when the stock dropped 24.9% on the news that the company reported second quarter earnings results. Its full-year revenue guidance missed and its EBITDA guidance for the full year fell short of Wall Street's estimates. 

On the other hand, revenue and EPS came in ahead of analysts' expectations during the quarter. Overall, this was a weaker quarter for the company, given the lowered guidance.

Array is down 21.7% since the beginning of the year, and at $5.28 per share, it is trading 65% below its 52-week high of $15.10 from March 2024. Investors who bought $1,000 worth of Array’s shares at the IPO in October 2020 would now be looking at an investment worth $144.86.

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