Enphase Energy (NASDAQ:) saw its shares tumble more than 6% in premarket trading Wednesday after the energy technology company issued a guidance that missed analysts’ expectations.
For the fiscal Q1 2024, ENPH reported earnings per share (EPS) of $0.35, missing the consensus estimates of $0.42. Revenue was reported at $263.3 million, also below the anticipated $281.09 million.
Looking ahead, Enphase Energy projected its fiscal Q2 2024 revenue to be in the range of $290 million to $330 million, missing the consensus projection of $350.7 million.
Analysts at Wolfe Research said the print was another miss due to an uncertain demand picture.
However, Enphase remains optimistic that Q1 was the bottom and “if nothing else, ENPH should benefit from seasonality representing some sequential upside through mid-year,” analysts wrote.
“We expected 2Q24 to be a “clean up” quarter for the channel with more under-shipment required; ENPH essentially confirmed this on the call and assuming the channel does clear by 3Q, focus will turn back to underlying demand,” they said.
Meanwhile, analysts at BMO Capital Markets said they came away from Enphase’s call feeling “less confident” that the company will “achieve the upper end of what it had described as $450-500MM normalized demand” after an underwhelming guide.
For that reason, BMO trimmed Q2-Q4 estimates and lowered the target price from $118 to $113, while maintaining a Market Perform rating.