Particle.news
Download on the App Store
5 ARTICLES
·
last mo.

Enphase Shares Slide on Weak Q4 Outlook as Tariffs Pressure Margins

The company is shifting its supply chain away from China to curb exposure after disclosing tariffs of more than 40% on some cell packs.

Miniatures of solar panel and electric pole are seen in front of Enphase logo in this illustration taken January 17, 2023. REUTERS/Dado Ruvic/Illustration
Image
Image

Overview

  • Enphase forecast fourth-quarter revenue of $310 million to $350 million, below Wall Street expectations compiled by LSEG.
  • The company guided gross margin to 42%–45% with roughly five percentage points of tariff impact after a 4.9-point hit in the third quarter.
  • Shares fell more than 8% after hours and were down roughly 13% Wednesday following the guidance.
  • Third-quarter results topped estimates with $410.4 million in revenue, adjusted EPS of $0.90, and record IQ Battery shipments of 195 MWh alongside about 1.77 million microinverters.
  • Analysts trimmed targets after the update, with JPMorgan keeping a Neutral rating and cutting its price target to $37 and RBC lowering its target to $31 with Sector Perform.