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Investing.com -- Enphase Energy Inc (NASDAQ:ENPH) saw its stock plummet 11.3% after the solar technology company reported first-quarter earnings that missed analyst expectations and provided weaker-than-anticipated guidance for the current quarter.
The global energy technology firm posted adjusted earnings per share of $0.68 for Q1 2025, falling short of the $0.70 consensus estimate. Revenue came in at $356.1 million, slightly below analysts’ projections of $357.75 million but up 35.2% YoY from $263.3 million in Q1 2024.
For the second quarter, Enphase forecasts revenue between $340 million and $380 million, with the midpoint of $360 million falling below the Street’s estimate of $377.74 million. The outlook includes approximately $40 million in safe harbor revenue.
"We reported quarterly revenue of $356.1 million in the first quarter of 2025, along with 48.9% for non-GAAP gross margin," said Badri Kothandaraman, President and CEO of Enphase Energy. "We shipped approximately 1.53 million microinverters, or 688.5 megawatts DC, and 170.1 megawatt hours (MWh) of IQ® Batteries."
The company’s U.S. revenue decreased by about 13% compared to the previous quarter, which management attributed to seasonality and softening demand. However, European revenue increased by approximately 7%, primarily due to higher battery sales.
Enphase’s non-GAAP gross margin declined to 48.9% in Q1 from 53.2% in Q4 2024, mainly due to lower bookings of 45X production tax credits and product mix.
The significant stock drop following the earnings release suggests investors were disappointed by the company’s performance and outlook amid challenges in the U.S. solar market.