Solar Inverter Maker: Enphase Energy falls on dour forecast but analysts positive on long-term view

0 75

Shares of Enphase Energy hit a three-year low on Friday after the solar inverter maker forecast current-quarter revenue below estimates.
The company late on Thursday forecast fourth-quarter revenue to range between $300 million and $350 million, falling far short of analysts’ average estimate of $583.9 million, as per LSEG data.
It came after the company missed third-quarter revenue estimates over excess inventory levels and lower demand in European markets.
Enphase Energy’s shares were trading 16.3% lower at $80.53 in early trading, including which the company has lost 70% in its market capitalization since the start of this year.
Solar equipment makers like Enphase and SolarEdge have been struggling to offload excess inventory due to weakening demand in key European markets like the Netherlands, France, and Germany.
Despite current headwinds, analysts remained positive about the company’s long-term outlook.
“There is nothing that the company itself is doing “wrong” – it is simply part of a value chain that is experiencing headwinds. Rest assured, once the interest rate freakout subsides, the rebound will come quickly,” said Raymond James analysts in a note.
Oppenheimer analysts said though the “market dynamics remain mixed”, Enphase is making the right choice to aggressively manage channel inventories.
Fremont, California-based Enphase reported a 34% fall in third-quarter revenue from Europe due to inventory build-up.
Evercore ISI analysts said they expected the “European market will be faster to normalize than the US”

Source link

DMCA compliant image

Denial of responsibility! YoursTelecast is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.
Leave A Reply

Your email address will not be published.