What Happened?
Shares of solar tracking systems manufacturer Array (NASDAQ: ARRY) fell 34.8% in the morning session after the company reported mixed fourth-quarter results, which were overshadowed by a weak financial outlook for the full year.
While Array's revenue of $226 million beat analyst expectations and its adjusted earnings per share of $0.01 met forecasts, investors focused on the negatives. The company's guidance for the upcoming financial year 2026 disappointed Wall Street. The adjusted EBITDA forecast of $215 million at the midpoint came in well below the $256.4 million consensus, and the adjusted EPS guidance of $0.70 at the midpoint also missed analyst estimates. Furthermore, profitability was a major concern, as the company's gross profit margin declined by 19.9 percentage points year on year. The weak guidance and shrinking margins appeared to be the primary drivers for the sell-off.
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What Is The Market Telling Us
Array’s shares are extremely volatile and have had 77 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 previous big move we wrote about was 20 days ago when the stock gained 5.5% on the news that the broader market rebounded from a tech-driven sell-off, with investors taking the opportunity to buy stocks at lower prices.
This rally was fueled by a recovery in technology stocks and a significant bounce in Bitcoin, which stabilized after losing over half its value from its October peak. Investor sentiment was also lifted by a surprising improvement in U.S. consumer sentiment and the realization that massive AI-related capital expenditure, such as Amazon's planned $200 billion, directly benefits chipmakers like Nvidia and Broadcom. These "pick-and-shovel" winners jumped as much as 7%, helping the S&P 500 edge back into positive territory for 2026. The highlight of the day was the Dow Jones Industrial Average, which surged and crossed the historic 50,000 threshold for the first time.
Array is down 26.7% since the beginning of the year, and at $7.10 per share, it is trading 40.7% below its 52-week high of $11.96 from February 2026. Investors who bought $1,000 worth of Array’s shares 5 years ago would now be looking at an investment worth $191.34.
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