Emphase Energy (ENPH, $146.97) stock drops after weak guidance
Enphase Energy shares fell on Wednesday, following the company’s disappointing guidance for the second quarter on challenges to semiconductor component supply.
Enphase. which makes microinverters for solar systems, reported adjusted earnings of $0.56 per share for the quarter ended March, beating the Zacks Consensus Estimate of $0.41 per share. Earnings were $0.38 per share a year ago.
Revenues of $301.75 million exceeded the Zacks Consensus Estimate by 3.08%. This compares to year-ago revenues of $205.55 million.
However, the company’s weak second-quarter guidance led to its shares falling. It expects sales to come in between $300 million and $320 million during the second quarter, compared to analysts’ projections of $320.7 million (based on FactSet data).
“Looking to Q2, our shipment volumes will be constrained by semiconductor component availability,” Enphase President and CEO Badrinarayanan Kothandaraman said during the company’s earnings call.
“Although we are increasing the capacity of solar microinverters every quarter and the demand is increasing every quarter, the supply is unable to keep up with demand because of semiconductor constraints, component constraints,” Kothandaraman added. This will lead to a “slower ramp” beginning in the third quarter, he indicated.
ENPH's RSI Indicator recovers from oversold territory
The RSI Oscillator for ENPH moved out of oversold territory on January 23, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 34 similar instances when the indicator left oversold territory. In of the 34 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on February 03, 2025. You may want to consider a long position or call options on ENPH as a result. In of 70 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ENPH just turned positive on February 03, 2025. Looking at past instances where ENPH's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ENPH advanced for three days, in of 325 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
ENPH moved below its 50-day moving average on January 08, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ENPH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for ENPH entered a downward trend on January 16, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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