Enphase Energy Stock Slides On Q3 Earnings Miss: US Revenue Jumps, European Revenue Falls On 'Further Softening' Demand

Enphase Energy Inc ENPH reported third-quarter financial results on Tuesday that came up short of analyst expectations. Here are the main highlights from the quarter.

Q3 Earnings: Enphase Energy reported third-quarter revenue of $380.9 million, missing the consensus estimate of $391.979 million. The solar company reported adjusted earnings of 65 cents per share, missing analyst estimates of 77 cents per share, according to Benzinga Pro.

U.S. revenue increased approximately 43% on a quarter-over-quarter basis due to higher shipments to distributors. Meanwhile, revenues in Europe fell approximately 15% quarter-over-quarter, driven by a “further softening” in European demand.

Enphase shipped 172.9 megawatt hours of IQ batteries in the quarter and shipped approximately 1,176,000 microinverters from its contract manufacturing facilities in the U.S. The company also highlighted the launch of its AI-based software for energy optimization in the quarter.

“We began shipping IQ8HC microinverters with higher domestic content, produced at our contract manufacturing facilities in the U.S. We expect to begin shipping our commercial microinverters, and batteries with higher domestic content, produced at our U.S. contract manufacturing facilities in the fourth quarter of 2024,” the company said.

Enphase said it generated $170.1 million in cash flow from operations and $161.3 million in free cash flow during the quarter. The company ended the quarter with $1.77 billion in cash, cash equivalents and marketable securities.

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Outlook: Enphase expects fourth-quarter revenue to be in the range of $360 million to $400 million. The company anticipates third quarter gross margin of 47% to 50%, or 49% to 52% on an adjusted basis.

Management will hold a conference call to further discuss these results with analysts and investors at 4:30 p.m. ET.

ENPH Price Action: Enphase shares were down 7.31% in after-hours, trading at $85.20 at the time of publication Tuesday, according to Benzinga Pro.

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