Enphase Energy Shares Drop on Q3 Earnings and Tepid Forecast

Basio badr

ago 3 hours

Enphase Energy Shares Drop on Q3 Earnings and Tepid Forecast

Enphase Energy Inc (NASDAQ:ENPH) released its financial results for the third quarter, showing a mixture of strong performance in the U.S. market and challenges in Europe.

Q3 Financial Highlights

For the third quarter, Enphase reported:

Revenue: $410.43 million, surpassing the analyst consensus of $365.81 million.
Adjusted Earnings: 90 cents per share, exceeding expectations of 65 cents per share.
Shipments: Approximately 1.77 million microinverters and 195 megawatt-hours of IQ batteries.

U.S. and European Market Performance

The company’s revenue in the U.S. saw a significant increase of about 29% quarter-over-quarter. This growth was attributed to rising demand and safe harbor revenue.

Conversely, European revenue experienced a decline of roughly 38% compared to the previous quarter, highlighting a weakening demand in that region.

Cash Flow and Financial Position

Enphase generated $13.9 million in cash flow from operations during the quarter. By the end of the period, the company held $1.48 billion in cash, cash equivalents, and marketable securities.

Looking Forward

For the fourth quarter, Enphase expects revenue between $310 million and $350 million. This forecast falls short of the current estimates of $381.44 million.

The company anticipates a gross margin of 40% to 43%, or adjusted margins of 42% to 45%.

Upcoming Launches

Enphase is set to begin the shipment of its new products in the fourth quarter:

IQ9N-3P Commercial Microinverter
IQ EV Charger 2: Currently being shipped to 18 countries, this charger is designed to integrate with Enphase solar and battery systems or function independently.