Shares of Enphase Energy (ENPH) tumbled 5.10% in after-hours trading on Tuesday, despite reporting better-than-expected third-quarter results. The solar technology company's stock decline was primarily driven by a disappointing fourth-quarter revenue forecast that fell short of analyst expectations.

Enphase reported third-quarter revenue of $410.43 million, surpassing the consensus estimate of $365.81 million. Adjusted earnings per share came in at $0.90, significantly beating the expected $0.65. The company's performance was bolstered by strong U.S. demand, with domestic revenue increasing approximately 29% quarter-over-quarter. However, this growth was partially offset by a 38% decline in European revenues due to softening demand in the region.

Despite the solid Q3 performance, investors were spooked by Enphase's fourth-quarter guidance. The company projected Q4 revenue in the range of $310 million to $350 million, well below the analyst consensus of $381.44 million. This outlook suggests ongoing challenges in the European market and potential headwinds in the solar industry. Enphase also announced plans to begin shipments of its new IQ9N-3P Commercial Microinverter and IQ EV Charger 2 to U.S. customers during Q4, which could impact near-term financial results as the company ramps up production and marketing for these new products.