Shares of solar product manufacturer SolarEdge took a significant hit on Wednesday after hours, following the company's disappointing guidance for its fourth quarter. The soft guidance is seen as a result of ongoing struggles in the renewable energy sector, dealing a blow to investor confidence. CNBC reports that SolarEdge shares sank approximately 24% in response to the news.

For the company's fourth quarter, SolarEdge reported a loss per share of 55 cents. This figure fell short of the 89 cents per share expected by LSEG (formerly known as Refinitiv). Similarly, the company's revenue for the same period stood at $725 million, lower than the anticipated $768 million forecasted by LSEG.

Looking ahead, SolarEdge expects its revenue for the coming fourth quarter to range between $300 million and $350 million. On a broader scale, the company projected the overall solar sector's revenue to fall within the range of $275 million to $320 million.

The downward revision in guidance comes after SolarEdge issued a warning to Wall Street back in October, predicting lower-than-expected earnings for the third quarter. This announcement caused the company's stock to plummet by 30%. During that time, SolarEdge's CEO, Zvi Lando, expressed concerns about declining installation rates for solar panels, which was unexpected for the typically robust third quarter.

Despite being based in Israel, SolarEdge stated that the Israel-Hamas war in October did not have any significant impact on its manufacturing operations. The company's poor performance reflects broader headwinds faced by the solar sector over the past year. Rising interest rates have dampened the demand for solar energy, posing challenges for industry players like SolarEdge.

Following the news, other solar stocks experienced slight dips in after-hours trading. Enphase Energy saw a 7% decrease in share value, while Sunrun witnessed a 4% decline.

Investors and industry analysts will closely monitor future updates and developments regarding SolarEdge's performance as the renewable energy market continues to face uncertainties.