Core Viewpoint - Enphase Energy's shares dropped significantly after missing analyst estimates for the first quarter and providing a lower guidance for the second quarter, compounded by concerns over tariffs affecting margins later in the year [1][2][3]. Financial Performance - In Q1, Enphase reported a revenue growth of 35.2% to $356.1 million and adjusted earnings per share of $0.68, nearly double from the previous year [2]. - Despite the growth, the results fell short of analyst expectations of $362 million in revenue and $0.73 in earnings per share [2]. Guidance and Margins - Management guided for flat revenue in Q2, estimating between $340 million and $380 million, with the midpoint below analyst expectations of $376 million [3]. - CEO noted a 2% gross margin headwind due to tariffs in Q2, which is expected to increase to a 6% to 8% impact in Q3 and Q4 [3]. Macroeconomic and Political Environment - Enphase faces a challenging macroeconomic environment as consumers may avoid large purchases like solar panels, and political factors could negatively impact the company [4]. - The Inflation Reduction Act (IRA) currently boosts Enphase's gross margins by over 10 percentage points and lowers its tax rate by six percentage points, but there are uncertainties regarding the future of the IRA [5]. Valuation and Investment Opportunity - Enphase's stock is currently 84% off its all-time highs, trading at 18.7 times this year's earnings estimates and 13.1 times 2026 estimates, representing the lowest valuation in recent history [6]. - Despite the risks, the company remains profitable, presenting a potential opportunity for long-term investors in residential solar [6].

Enphase Energy, Inc. (ENPH) reported first-quarter 2025 adjusted earnings of 68 cents per share, which increased 94.3% from 35 cents reported in the prior-year quarter. However, the bottom line missed the Zacks Consensus Estimate of 71 cents by 4.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Including one-time adjustments, the company posted GAAP earnings of 22 cents per share against the loss of 12 cents incurred in the year-ago quarter.The year-over-year earnings improvement ...

Company Performance - Enphase Energy Inc (NASDAQ:ENPH) stock is down 6.8% to $49.98, following first-quarter earnings and revenue that fell short of expectations [1] - CEO Badri Kothandaraman indicated that tariffs are a significant impediment to business, potentially reducing gross margins by 2% in the second quarter [1] - The stock previously hit a five-year low of $45.21 and is down 28% in 2025 [1] Analyst Reactions - Eight brokerages have lowered their price targets, with Jefferies making the steepest cut from $44 to $37 [2] - The current 12-month consensus price target is $69.69, indicating a nearly 40% premium from the current stock price [2] Options Market Activity - Options traders are increasingly buying puts, with a 50-day put/call volume ratio of 1.24, ranking in the 86th percentile of its annual range [3] - In the first hour of trading, 23,000 calls were exchanged, which is ten times the average intraday volume and double the number of puts [4] - The most popular options include the weekly 4/25 50-strike call and the weekly 5/2 40-strike put, with sell-to-open activity detected for both [4]

Here are some other stocks moving lower in pre-market trading. Now Read This: Photo via Shutterstock Gelteq Limited GELS shares dipped 17.7% to $2.3709 in pre-market trading after jumping 211% on Tuesday. Forge Global Holdings, Inc. FRGE shares tumbled 12.1% to $10.38 in pre-market trading after falling 4% on Tuesday. NovaGold Resources Inc. NG fell 10.6% to $3.89 in today's pre-market trading after jumping 40% on Tuesday. Akso Health Group AHG dipped 9.4% to $1.2500 in pre-market trading. SolarEdge Technol ...

Enphase Stock Plunges After Earnings Miss. Tariffs Will Hit Margins, CEO Says. ...

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing with PricewaterhouseCoopers before transitioning to day trading nearly 20 years ago [2] - Successfully navigated significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2]

Financial Data and Key Metrics Changes - The company reported quarterly revenue of $356.1 million, with a gross margin of 49% and operating income of 27% on a non-GAAP basis [8][9][52] - Non-GAAP gross margin decreased to 48.9% from 53.2% in the previous quarter, primarily due to lower bookings and product mix [52] - GAAP net income for Q1 was $29.7 million, resulting in GAAP diluted earnings per share of $0.22, down from $0.45 in Q4 [55][56] Business Line Data and Key Metrics Changes - Approximately 1.53 million microinverters and 170.1 megawatt hours of batteries were shipped in Q1 [8][51] - The company expects to ship between 160 and 180 megawatt hours of IQ Batteries in Q2 [59] - The average call wait time for customer service increased slightly to 3.5 minutes due to winter storms [10] Market Data and Key Metrics Changes - US revenue decreased by 13% in Q1 compared to Q4, primarily due to seasonality and softening customer demand [17] - In Europe, revenue increased by 7% in Q1, driven by the shipment of the FlexPhase battery in Germany [19] - The US and International revenue mix for Q1 was 74% and 26%, respectively [16] Company Strategy and Development Direction - The company is focused on product innovation, quality, and customer experience, with plans to introduce new products like the fourth generation battery and IQ EV charger [18][47] - The company aims to diversify its supply chain to mitigate the impact of tariffs, with a goal to fully offset the impact by Q2 2026 [15][71] - The strategy includes expanding the served available market in Europe and introducing a full product portfolio across more countries [26][48] Management's Comments on Operating Environment and Future Outlook - Management noted that the US solar market is under pressure from high interest rates, but there are encouraging signs in California with growing confidence among installers [18] - The company expects Q2 revenue to be in the range of $340 million to $380 million, including approximately $40 million from a safe harbor sales agreement [59] - Management expressed optimism about capturing market share in the battery market with the new fourth generation battery [80] Other Important Information - The company repurchased 1,594,105 shares at an average price of $62.71 per share for a total of approximately $100 million [56] - The company has identified tangible sourcing options outside China to mitigate tariff impacts [71] Q&A Session Summary Question: Regarding Q2 guidance and tariff impacts - Management confirmed that the Q2 guidance includes a 2% gross margin headwind from tariffs, with an expected increase to 6% to 8% in Q3 due to the impact of tariffs on battery cell packs [63][64][71] Question: Demand trends and clarity around IRA - Management acknowledged that the lack of certainty is affecting demand, but noted that bookings are currently healthy at about 80% [75][76] Question: Revenue cadence and margin trajectory - Management did not provide specific guidance for Q3 or Q4 but indicated that new product introductions and seasonal trends could positively impact revenue [85][89] Question: Battery shipment volumes and margins - Management expects to continue growing battery shipments, with a focus on reducing overall system costs despite potential price increases for the battery itself [100][101] Question: Supply chain adjustments and raw materials - Management confirmed that they are maintaining LFP chemistry for batteries and are working on qualifying new cell sources outside China [110] Question: Q2 guidance and booking confidence - Management stated that the current booking level of 80% is solid and expects to be fully booked soon [112] Question: Market share gains and pricing strategy - Management highlighted the importance of value propositions like VPP functionality to improve ROI for homeowners and gain market share [117][118]

Core Insights - Enphase Energy reported quarterly earnings of $0.68 per share, missing the Zacks Consensus Estimate of $0.71 per share, but showing an increase from $0.35 per share a year ago, resulting in an earnings surprise of -4.23% [1] - The company posted revenues of $356.08 million for the quarter, missing the Zacks Consensus Estimate by 1.65%, and up from $263.34 million year-over-year [2] - Enphase Energy shares have declined approximately 24.8% year-to-date, compared to a 12.3% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $379.09 million, and for the current fiscal year, it is $3.28 on revenues of $1.54 billion [7] - The estimate revisions trend for Enphase Energy is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The solar industry, to which Enphase Energy belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, which may negatively impact stock performance [8] - First Solar, another company in the solar industry, is expected to report quarterly earnings of $2.59 per share, reflecting a year-over-year increase of 17.7%, with revenues projected at $851.85 million, up 7.3% from the previous year [9][10]

Financial Performance - Net revenues for the three months ended March 31, 2025, increased by $92.7 million, or 35%, to $356.1 million compared to the same period in 2024, driven by an 11% increase in microinverter units sold and a 125% increase in IQ Batteries MWh shipped [153]. - Gross profit for the three months ended March 31, 2025, was $168.2 million, a 46% increase from $115.5 million in the same period in 2024 [155]. - Net revenues in the United States reached $263.2 million for the three months ended March 31, 2025, a 76% increase from $150.0 million in the same period in 2024 [154]. - International net revenues decreased by $20.5 million, or 18%, to $92.8 million for the three months ended March 31, 2025, primarily due to softening demand in Europe [154]. Cost and Expenses - Cost of revenues increased by $40.0 million, or 27%, for the three months ended March 31, 2025, primarily due to higher volumes of microinverter units sold and increased MWh of IQ Batteries shipped [155]. - Research and development expenses decreased by $4.0 million, or 7%, to $50.2 million for the three months ended March 31, 2025, compared to $54.2 million in the same period in 2024 [157]. - Sales and marketing expenses decreased by $4.4 million, or 8%, to $48.9 million for the three months ended March 31, 2025, compared to $53.3 million in the same period in 2024 [158]. - General and administrative expenses decreased by $1.1 million, or 3%, to $34.0 million for the three months ended March 31, 2025, compared to $35.2 million in the same period in 2024 [160]. - Restructuring and asset impairment charges increased by $1.3 million, or 66%, to $3.2 million for the three months ended March 31, 2025, compared to $1.9 million in the same period in 2024 [161]. Income and Tax - Interest income decreased by $2.7 million, or 14%, to $17.0 million for the three months ended March 31, 2025, compared to $19.7 million in the same period in 2024 [162]. - The income tax provision increased by $12.6 million, or 273%, to $17.2 million for the three months ended March 31, 2025, compared to $4.6 million in the same period in 2024 [164]. Cash Flow and Debt - Cash, cash equivalents, restricted cash, and marketable securities decreased by $97.7 million, or 6%, to $1.5 billion as of March 31, 2025, compared to $1.6 billion as of March 31, 2024 [166]. - Total debt decreased by $94.0 million, or 7.3%, to $1.2 billion as of March 31, 2025, compared to $1.3 billion as of March 31, 2024 [167]. - Net cash provided by operating activities decreased by $0.8 million to $48.4 million for the three months ended March 31, 2025, compared to $49.2 million in the same period in 2024 [171]. - Net cash used in financing activities increased by $113.3 million to $214.2 million for the three months ended March 31, 2025, compared to $100.9 million in the same period in 2024 [175]. - As of March 31, 2025, the company settled all outstanding Notes due 2025 for $102.2 million in cash [177]. - The Notes due 2026 are now classified as current debt, maturing in less than a year [177]. Market and Risk - There have been no material changes in market risk compared to the disclosures in the Form 10-K [181]. - There are no significant updates regarding risk factors as outlined in the Form 10-K [181]. Accounting Policies - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring assumptions and estimates that could materially impact reported amounts [178]. - There have been no changes to critical accounting policies as described in the Form 10-K [179]. - Future financial statement presentation may be affected by material differences between estimates and actual results [178]. - The company regularly reviews accounting policies to ensure fair presentation in accordance with U.S. GAAP [178]. - The company has adopted new accounting pronouncements as discussed in Note 1 of the Quarterly Report [180]. - For more information on future minimum operating leases and inventory component purchase obligations, refer to Note 10 in the Quarterly Report [177]. Product and Market Performance - Approximately 1.5 million microinverter units were sold and 170.1 MWh of IQ Batteries were shipped in the three months ended March 31, 2025, compared to 1.4 million microinverter units and 75.5 MWh of IQ Batteries in the same period in 2024 [153]. - The company has shipped approximately 81.5 million microinverters and deployed approximately 4.8 million residential and commercial systems in over 160 countries as of March 31, 2025 [134]. - The IQ8 Microinverters are designed to maximize energy production and can manage a continuous DC current of 14 amperes, supporting higher powered solar modules [146]. - The Enphase IQ Battery storage systems have usable capacities of 10.1 kWh and 3.4 kWh for the United States, and 10.5 kWh and 3.5 kWh for Europe and other international markets [148].

FREMONT, Calif., April 22, 2025 - Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world's leading supplier of microinverter-based solar and battery systems, announced today financial results for the first quarter of 2025, which included the summary below from its President and CEO, Badri Kothandaraman. We reported quarterly revenue of $356.1 million in the first quarter of 2025, along with 48.9% for non-GAAP gross margin. We shipped approximately 1.53 million microinverters, ...