Shares of Enphase Energy (NASDAQ) tumbled 16% in the morning session following a disappointing third-quarter earnings report. The company’s revenue and earnings per share (EPS) came in below Wall Street’s expectations, with a notable 15% sequential drop in European revenue, reflecting declining demand in the region.
Adding to investor concerns, Enphase issued weak guidance for the upcoming quarter, with its revenue outlook falling short of consensus estimates. This earnings miss has significantly impacted the market’s perception of the business, leading to the sharp decline in its share price.
Enphase shares have been highly volatile over the past year, with 42 instances of price movements exceeding 5%. Despite this, the current 16% drop stands out as a rare reaction, underscoring the severity of the market’s response to the earnings report.
Year-to-date, Enphase is down 40.5%, with shares currently trading at $78.08, which is 43.1% below the company’s 52-week high of $137.34 reached in December 2023. While the stock has taken a hit recently, long-term investors may still see potential, as a $1,000 investment in Enphase five years ago would now be worth approximately $3,337.
