Why Enphase Energy Stock Crashed Today

Core Insights - Enphase Energy's stock dropped 12% despite beating earnings expectations, with earnings at $0.90 per share and sales at $410.4 million, surpassing analyst forecasts of $0.71 per share and $383 million in sales [1][3][4] Financial Performance - Enphase's quarterly sales increased by 7.7% year over year, marking the best sales performance in two years [3] - The gross profit margin improved by one percentage point to 47.8%, while operating costs rose only 1.4% [3] - Net profit saw a 45% increase, totaling $66.6 million, resulting in net earnings of $0.50 per share for the quarter [4] Future Guidance - For Q4, Enphase provided a sales forecast of $310 to $350 million, significantly lower than Q3 and below Wall Street's expectation of $383 million [6] - The gross profit margin is also expected to decline to between 40% and 43% [6] - The guidance indicates a likely miss on earnings expectations for Q4, contributing to the stock's decline [7]