Enphase's forecast for fourth-quarter revenue is below expectations due to muted demand

Enphase Energy, a maker of solar inverters, forecast revenue for the fourth quarter below Wall Street's expectations on Tuesday. This was due to weak demand across some markets. Shares fell 9% following the bell.

The demand for residential solar in Europe has declined due to lower electricity prices, and increased competition on key markets like the Netherlands and Germany.

According to LSEG data, the solar energy company expects its fourth-quarter revenues to range between $360 and $400 million. This compares to analyst expectations of $435.8 millions.

The company reported that the third-quarter revenue for Europe dropped 15% from the previous quarter due to a further easing of the demand on the continent.

Enphase's largest market, the U.S.A., saw revenue rise 43% in a single quarter as inventories returned to normal.

The global shipments of microinverters fell by 55.6%, to 1.73 millions in the third quarter ending Sept. 30 from a year ago.

The Fremont-based company expects to begin shipping commercial microinverters, and batteries, with a higher domestic content, manufactured at its U.S. Contract Manufacturing Facilities, in the fourth quarter.

(source: Reuters)