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Enphase Energy Revenue Misses; Europe Demand Weakens
20 Nov
Summary
- Enphase Energy's third-quarter earnings surpassed expectations.
- Fourth-quarter revenue guidance was below analyst predictions.
- Weakening demand in Europe is cited as a primary reason for the lower outlook.
Enphase Energy reported strong third-quarter results, with adjusted earnings per share of $0.90 and revenue of $410.4 million, exceeding analyst forecasts and marking a two-year revenue high. These positive financial figures were overshadowed by a lower-than-expected fourth-quarter revenue projection of $310-350 million, falling short of the anticipated $385.8 million.
Company management pointed to a decline in demand within Europe, historically a significant growth driver for solar and battery manufacturers, as the primary cause for the reduced outlook. The guidance also suggests persistent high operational expenses, estimated between $77 million and $81 million.
Despite the cautious outlook, Enphase Energy is set to introduce new products in the fourth quarter. These upcoming launches include the IQ9N-3P Commercial Microinverter, IQ EV Charger 2, and the IQ Battery 5P with FlexPhase, indicating continued innovation in their home energy solutions.
