Shares of Maxeon Solar Technologies took a hit after the company recently revised its full-year guidance due to lower demand in the market. Following this development, the stock experienced a significant decline of 22% in after-hours trading, dropping to $17.36. This decline followed a 2.3% decrease at Thursday's closing. Despite a strong performance earlier this year with a 39% increase, the company's shares suffered a notable setback.

Maxeon, a Singapore-based solar technology company, attributed the weakened demand to higher interest rates and an abundance of inventory throughout the industry. CEO Bill Mulligan expressed concern about the third quarter, particularly regarding residential sales, as the company expects demand to remain low during this period.

As a result of the lower demand, Maxeon has adjusted its full-year revenue expectation to be between $1.25 billion and $1.35 billion. This revision is notably lower than the previous guidance of $1.4 billion to $1.6 billion. Similarly, the company also anticipates a decrease in adjusted earnings for the year, now expecting $80 million to $100 million compared to the prior range of $95 million to $120 million.

During the second quarter, Maxeon reported a loss of $1.51 million, or 3 cents per share. This is in contrast to a loss of $87.9 million, or $2.15 per share, during the same period last year. The company's revenue increased by 46% to reach $348.4 million; however, it fell short of analysts' expectations of $374.3 million.

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