MW Enphase Energy just cast more doubt about its immediate future

By Claudia Assis

Enphase says it expects Q3 sales between $330 million and $370 million, against Wall Street's forecast of $372 million

Enphase Energy Inc. late Tuesday reported better-than-expected quarterly results, but Wall Street fretted anew about the solar-power company's immediate future as it called for lower sales in the current quarter.

Enphase (ENPH) said it expects third-quarter revenue between $330 million and $370 million, contrasting with FactSet consensus for revenue of $372 million in the quarter. The stock dropped around 7% in the extended session.

The company reported adjusted second-quarter earnings per share of 69 cents on sales of $363.2 million, compared with a forecast of adjusted earnings of 62 cents on sales of $360 million, according to FactSet.

Enphase and other solar power-related companies, particularly those focused on residential solar, have been under a cloud since early draft versions of the Republicans' recently passed tax-and-spending bill started to circulate.

Related: Here's why Enphase and other solar stocks are tanking after Trump's latest move

Residential solar-tax credits are set to be eliminated at the end of the year, dealing another blow to a market already beset by high interest rates. In addition, Enphase's microinverters and batteries are considered top of the line - and priced accordingly, highlighting the company's challenges.

Analyst Philip Shen at Roth said in a note Monday he expects Enphase's sales to drop to about $1 billion next year, from about $1.5 billion this year.

Shares of Enphase have lost about 38% this year, contrasting with gains of around 7% for the S&P 500 index SPX in the same period.

-Claudia Assis

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July 22, 2025 17:37 ET (21:37 GMT)

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