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 in +5.05% Uptrend, rising for three consecutive days on January 03, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where ENPH advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where ENPH's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on January 08, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on ENPH as a result. In of 70 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 .
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