Shares of Fluence Energy fell sharply Thursday after the energy storage firm cut part of its fiscal-year forecast, citing supply chain issues that are disrupting U.S. production.
Shares dropped 17%, on track for their worst session since Feb. 5, as Fluence ranked among the poorest performers in the Nasdaq. The stock has fallen 63% this year.
The company now expects revenue of $2.4 billion for the fiscal year, down from prior guidance of about $3 billion, and an adjusted Ebitda loss of $200 million, compared with its earlier forecast for a $10 million loss.
CEO Julian Nebreda said in a statement that while Fluence’s international supply chain has “continued to work well,” production delays and logistical issues are disrupting its new manufacturing facility in Houston.
Wall Street reacted negatively to the announcement, with seven of the 15 firms polled by FactSet cutting their price targets on Fluence shares Thursday.
Truist Securities lowered its price target for Fluence to $10 from $16, as analysts wrote the guidance reduction was “another hit to confidence in execution, which was already thin.”
Baird slashed its price target to $3 from $10, saying Fluence’s growing investment in U.S.-based production may set the firm back “substantially.”
Analysts from Guggenheim and JPMorgan cited mounting competitive pressure that could weigh on Fluence’s revenue and margins as they cut their price targets. Guggenheim analysts also said Fluence faces insufficient free cash flow through 2028.
Fluence briefly benefited from a boost in shares after announcing plans in June to develop data centers with Nvidia, Siemens and nVent Electric. Fluence said it would integrate its battery energy storage products into the data center designs.
The company has also faced pressure over production concerns as it relies on other manufacturers to make its underlying battery cells. Fluence reported $650 million in revenue through its third quarter last month, below Wall Street’s forecast of $818 million, as Nebreda said at the time that production had been “behind our expectation for this year.”