Enphase Posts Earnings Miss as Stock Sinks in After-Hours Trading

Enphase (NASDAQ:ENPH) is a Fremont, California-based company that is engaged in the design, development, manufacture, and sale of home energy solutions for the solar photovoltaic industry in the United States and around the world. Shares of Enphase have dropped 21% month-over-month as of close on Tuesday, October 22, 2024. Meanwhile, the stock has plunged 29% in the year-to-date period.

The company released its third quarter (Q3) fiscal 2024 earnings after markets closed on the same day. In Q3 2024, Enphase reported quarterly revenue of $380 million. That was down from total revenues of $551 million in the prior year. Net income was reported at $45.7 million – down from $113 million in Q3 fiscal 2023.

What was behind the earnings miss? Revenues in Europe dipped 15% in the third quarter compared to the prior year. According to the report, this was due to a further softening in European demand. On the other hand, revenues in the United States increased 43% compared to the previous year. That was due to higher shipments to distributors as inventory rose to “normal levels”.

Enphase finished the quarter with $1.77 billion in cash, cash equivalents, and marketable securities. The company continues to carry forward a strong balance sheet into the final quarter of the 2024 fiscal year.

Shares of Enphase currently possess a price-to-earnings ratio over 100. However, that still puts the stock in solid value territory compared to its peers at the time of this writing.