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Key Takeaways
- Enphase Energy was the biggest decliner in the S&P 500 Wednesday, a day after missing third-quarter profit and sales forecasts as demand in Europe slumped.
- The solar power equipment maker also gave lower-than-expected current-quarter guidance.
- Enphase Energy sees an “incremental” improvement in its U.S. business, but continued weakness in Europe.
Enphase Energy (ENPH) was the biggest decliner in the S&P 500 Wednesday, a day after the solar power equipment manufacturer posted weaker-than-expected results and guidance as European demand slumped.
The company reported third-quarter adjusted earnings per share (EPS) of $0.65, with revenue plunging more than 30% to $380.9 million. Both missed consensus estimates of analysts polled by Visible Alpha.Â
Enphase said that sales in Europe fell 15% from the second quarter because “of a further softening in European demand.” However, U.S. revenue jumped 43% sequentially on “higher shipments to distributors as inventory returned to normal levels.”
CEO Notes ‘Industry Slowdown’
Chief Executive Officer (CEO) Badri Kothandaraman explained that the company has “worked diligently to manage Enphase through an industry slowdown,” according to a transcript of the earnings call provided by AlphaSense. Kothandaraman added that Enphase anticipates “incremental improvement in our U.S. business and a continued slowdown in Europe in Q4.”
The company sees current-quarter revenue in the range of $360 million to $400 million, below forecasts.Â
Enphase Energy shares fell 13% late Wednesday morning to $80.25, their lowest level in nearly a year. They have lost about 40% of their value in 2024.
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