ENPH - Enphase Energy: Projected Recovery Fails To Impress Hold

2024-04-23 21:33:43 ET

Summary

• Leading microinverter and battery storage solutions supplier Enphase Energy, Inc. reported another set of disappointing quarterly results, with revenues and profitability coming in well below consensus expectations.
• While revenues in Europe increased approximately 70% sequentially, sales in the company's core U.S. market were down by 34%, which management attributed to seasonality and a further softening in demand.
• Adding insult to injury, Q2/2024 guidance came in well short of consensus expectations.
• On the conference call, management reiterated previous expectations for channel inventory to normalize by the end of Q2 and remained optimistic in both Europe and the United States.
• With the mediocre outlook likely to result in another round of estimate and price target cuts, I do not see any reason to initiate or add to existing positions at this point. Consequently, I am reiterating my "Hold" rating on Enphase Energy's shares.

Note:

I have discussed Enphase Energy, Inc. ( ENPH ) previously, so investors should view this as an update to my earlier coverage of the company. ...

For further details see: