Enphase Energy misses quarterly profit estimates, forecasts weak Q2 revenue

Enphase Energy, a solar inverter manufacturer, missed analyst expectations for the first-quarter profit due to a softening of demand in the United States. It also forecast revenue for the second-quarter below market expectations.

Shares dropped 12.5% in after market trading.

Enphase's residential solar inverter sales were affected by a softening of demand in California, the top U.S. state. The reform will be implemented in 2023.

Enphase, based in Fremont, California, saw its quarterly revenue rise 35% from a quarter earlier to $356.1 millions, but it fell short of the estimated $360.9million.

The company's expected second-quarter revenue is between $340 and $380 millions, which is lower than analysts' expectations of 376 million.

On Tuesday, U.S. Trade officials finalized steep tariffs on solar cells from Southeast Asia. This was a major step in settling a trade dispute that lasted a year, during which American manufacturers had accused Chinese companies for flooding the market unfairly with cheap goods.

LSEG data shows that Enphase's adjusted profit for the quarter of January to March was 68 cents, compared to analysts' estimates of 70 cents. (Reporting and editing by Shailesh Kuber in Bengaluru)

(source: Reuters)