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published in Blogs
Apr 28, 2021
Emphase Energy (ENPH, $146.97) stock drops after weak guidance

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.

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