Enphase Energy Inc (NASDAQ:ENPH) shares are falling Wednesday after the company reported worse-than-expected financial results for the first quarter. Multiple analysts also lowered price targets following the print.
- Q1 Revenue: $356.1 million, versus estimates of $361.43 million
- Q1 EPS: 68 cents, versus estimate of 70 cents
Enphase said U.S. revenue decreased approximately 13% quarter-over-quarter due to seasonality and "softening" U.S. demand. Revenue in Europe was up approximately 7% quarter-over-quarter, driven by higher battery sales. The solar company said it shipped approximately 1.53 microinverters, representing 170.1 megawatt hours of IQ batteries in the quarter.
Enphase Energy generated $48.4 million in cash flow from operations and $33.8 million in free cash flow during the quarter. Enphase ended the quarter with $1.53 billion in cash, cash equivalents, restricted cash and marketable securities.
Guidance: Enphase sees second-quarter revenue in the range of $340 million to $380 million. The company guided for second-quarter gross margin of 42% to 45%, or 44% to 47% on an adjusted basis. The gross margin forecast includes approximately two percentage points of new tariff impacts.
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Analyst Changes:
- Susquehanna analyst Biju Perincheril maintained Enphase with a Neutral and lowered the price target from $59 to $51.
- BMO Capital analyst Ameet Thakkar maintained Enphase with a Market Perform and lowered the price target from $59 to $46.
- Goldman Sachs analyst Brian Lee maintained Enphase with a Buy and lowered the price target from $90 to $77.
- Piper Sandler analyst Kashy Harrison maintained Enphase with a Neutral and lowered the price target from $47 to $42.
- RBC Capital analyst Christopher Dendrinos reiterated Enphase with a Sector Perform and lowered the price target from $59 to $54.
ENPH Price Action: Enphase Energy shares were down 15.7% at $45.05 at the time of publication Wednesday, per Benzinga Pro. Enphase shares are now down approximately 33% year-to-date and are nearing five-year lows.
Photo: AlyoshinE/Shutterstock.