What's Going On With Enphase Energy (ENPH) Stock?

Enphase Energy Inc ENPH shares are trading lower by 21.7% to $98.08 over the trailing five sessions. Shares of solar-related stocks are volatile in recent sessions in sympathy with SolarEdge Technologies Inc SEDG, which recently issued weak preliminary third-quarter outlook. The company also lowered its non-GAAP gross margin guidance.

What Happened With SEDG?

The company revised its third-quarter revenue forecast from $880-920 million to $720-730 million, falling short of the consensus estimate of $909.02 million. Additionally, they lowered the adjusted gross margin from 28%-31% to 20.1%-21.1% and adjusted operating income from $115-135 million to $12-31 million.

These adjustments were made because of unexpected order cancellations and delays from European distributors in the later part of the third quarter of FY23. These issues were primarily due to high inventory levels and slow installation rates....Read More

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Why This Matters To ENPH Investors

Enphase Energy and SolarEdge Technologies are solar energy industry competitors. If SolarEdge faces challenges or financial difficulties, it could signal potential issues for Enphase Energy. This may worry investors about Enphase's ability to thrive in such conditions.

SolarEdge's decision to reduce its non-GAAP gross margin guidance implies possible pricing pressures or higher costs in the solar sector. This might raise concerns about Enphase's ability to sustain profitable margins, potentially resulting in a sell-off of its stock.

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According to data from Benzinga Pro, ENPH has a 52-week high of $339.92 and a 52-week low of $95.62.