Enphase Energy Inc (NASDAQ:ENPH) shares are falling Wednesday after the company reported worse-than-expected financial results for the first quarter. Multiple analysts also lowered price targets following the print.
Enphase said U.S. revenue decreased approximately 13% quarter-over-quarter due to seasonality and "softening" U.S. demand. Revenue in Europe was up approximately 7% quarter-over-quarter, driven by higher battery sales. The solar company said it shipped approximately 1.53 microinverters, representing 170.1 megawatt hours of IQ batteries in the quarter.
Enphase Energy generated $48.4 million in cash flow from operations and $33.8 million in free cash flow during the quarter. Enphase ended the quarter with $1.53 billion in cash, cash equivalents, restricted cash and marketable securities.
Guidance: Enphase sees second-quarter revenue in the range of $340 million to $380 million. The company guided for second-quarter gross margin of 42% to 45%, or 44% to 47% on an adjusted basis. The gross margin forecast includes approximately two percentage points of new tariff impacts.
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Analyst Changes:
ENPH Price Action: Enphase Energy shares were down 15.7% at $45.05 at the time of publication Wednesday, per Benzinga Pro. Enphase shares are now down approximately 33% year-to-date and are nearing five-year lows.
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