Enphase drops as guidance and results fail to impress investors
Enphase Energy fell in after-hours trading Tuesday as uninspiring Q2 guidance overshadowed better-than-expected numbers in its Q1 earnings report. The maker of solar power and battery equipment reported:
Sales of $282.9 million vs. the $282.3 million FactSet expectation.
Non-GAAP diluted earnings per share of $0.47 vs. the $0.43 consensus estimate.
Q2 guidance for revenue between $280 million and $310 million ($295 million at the midpoint) vs. the $294.9 million forecast.
Enphase was a sometimes popular retail trade of the Covid era, when federal tax credits and low interest rates led to a burst of activity for rooftop solar installation. Between the end of 2019 and 2022, the shares rose more than 1,000%.
But as interest rates rose — driven, in part, by both Fed hikes and worries the increases wouldn’t be enough to quell price growth — and Republicans stripped out key tax credits and subsidies for the solar sector from the federal budget, the shares tanked. They’ve lost nearly 90% of their value since peaking in December 2022, and have emerged as a favorite of short sellers. Roughly 20% of the company’s public float is now in the hands of bearish traders.
