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SunEdison is crashing

Akin Oyedele   

SunEdison is crashing

SunEdison shares dropped by more than 22% in trading on Tuesday morning.

The renewable-energy firm reported third-quarter results before the market open, and posted a wider-than expected loss (excluding some items) of $0.92, versus the estimate for $0.65, according to Bloomberg.

Revenues of $476 million beat the consensus forecast for $452.6 million.

SunEdison shares fell to as low as $5.59, a level it has not reached for more than two years.

"We made the difficult, but necessary decision to optimize our organization in the face of the current market conditions within the yieldco space," CEO Ahmad Chatila said in the earnings statement.

SunEdison last month announced plans to layoff 15% of its workforce.

The company's shares are a favorite among hedge funds including David Einhorn's Greenlight Capital, which owned the largest stake among funds in the company according to Bloomberg data.

In July, Einhorn's portfolio recorded its worst monthly performance since October 2008, largely because of weakness in SunEdison shares.

The stock popped by as much as 6% on October 30, after it was rumored that hedge fund billionaire David Tepper bought a position in SunEdison.

Here's a chart showing the drop in shares on Tuesday:

Screen Shot 2015 11 10 at 10.31.12 AM

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