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Enphase Sinks as Tariffs Hit Margins and Q4 Outlook Despite Q3 Beat

The company forecast fourth-quarter revenue of $310 million to $350 million, missing Wall Street expectations.

Overview

  • Enphase said tariffs reduced third-quarter margins by about 4.9 percentage points and will also weigh on the current quarter.
  • The company reports paying over 40% tariffs on China-sourced cell packs and expects limited long-term exposure as it shifts its supply chain, with recent U.S. policy moves adding uncertainty.
  • Third-quarter results topped estimates with revenue of $410.4 million and adjusted earnings of $0.90 per share, aided by strong U.S. sales and battery shipments.
  • Fourth-quarter gross margin is guided to 42% to 45% including roughly five points of tariff impact, and the outlook excludes safe-harbor shipments that benefited Q3.
  • Shares fell more than 8% after hours and were down about 12% Wednesday as JPMorgan and RBC cut price targets and maintained cautious ratings.