Enphase Energy Stock Is Falling Wednesday: What's Going On?

Enphase Energy Inc ENPH shares are trading lower Wednesday after the company reported worse-than-expected financial results and issued weak guidance.

What Happened: Enphase reported first-quarter revenue of $263.3 million, which missed the consensus estimate of $281.95 million, according to Benzinga Pro. U.S. revenue was down approximately 34% on a year-over-year basis, while revenues in Europe climbed approximately 70%.

“The decline in revenue for the first quarter of 2024 compared to the fourth quarter of 2023 was the result of seasonality and a further softening in U.S. demand, while we continued to reduce shipments to manage channel inventory,” the company said.

The company reported adjusted earnings of 35 cents per share, which missed analyst estimates of 40 cents per share.

Gross margin came in at 43.9%. Enphase said it generated $49.2 million in cash flow from operations and $41.8 million in free cash flow during the quarter. The company ended the quarter with $1.63 billion in cash, cash equivalents and marketable securities.

Enphase said it expects second-quarter revenue to be between $290 million and $330 million versus estimates of $350.706 million. The company anticipates second-quarter gross margin of 42% to 45%.

See Also: Spotify Analysts Boost Their Forecasts After Q1 Earnings

Analyst Changes: Following the print, multiple analysts adjusted ratings and price targets.

• Guggenheim analyst Joseph Osha downgraded Enphase from Neutral to Sell and announced a price target of $92.

• Mizuho analyst Maheep Mandloi maintained Enphase with a Buy and lowered the price target from $148 to $147.

• Oppenheimer analyst Colin Rusch maintained Enphase with an Outperform and raised the price target from $133 to $134.

ENPH Price Action: Enphase shares were down 8.1% at $104.29 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Enphase Energy.