Enphase Energy Inc. came up short with its latest outlook on Tuesday, and its shares slumped in the extended session.
The company, which makes products for the solar and alternative-energy markets, expects $290 million to $330 million in revenue for its second quarter, whereas analysts tracked by FactSet were looking for $347 million. Enphase
ENPH,
+2.69%
logged $711 million in revenue in last year’s second quarter.
Enphase also posted a sharp decline in revenue for the first quarter. The company hauled in $263 million on the top line for the period, compared with $726 million in the year-earlier period. Analysts were modeling $276 million.
U.S. revenue dropped about 34% in the first quarter on a sequential basis, the company said, while Europe revenue was up 70%, also on a sequential basis.
“The decline in revenue for the first quarter of 2024 compared to the fourth quarter of 2023 was the result of seasonality and a further softening in U.S. demand, while we continued to reduce shipments to manage channel inventory,” Enphase said in its release.
Enphase’s stock fell about 6% in Tuesday’s extended session, after gaining 2.6% in regular trading.
The company recorded a first-quarter net loss of $16.1 million, or 12 cents a share, whereas it had reported net income of $146.9 million, or $1.02 a share, in the same period a year prior.
Enphase reported adjusted earnings per share of 35 cents, down from $1.37 a year before and below the 41-cent consensus view.
The solar industry has faced challenges this year, and related stocks have taken a hit upon demand concerns. Enphase shares are off 14% so far in 2024 and down 49% over a 12-month basis. Elsewhere, shares of Sunrun Inc.
RUN,
+2.19%
are off 48% so far this year, while shares of SunPower Corp.
SPWR,
-8.41%
are off 59%.
Enphase late last year announced layoffs impacting 10% of its staff. At the time, the company called out a “challenging” economy and said the actions would help “right-size” its business.
See more: Enphase Energy to lay off 10% of its workforce, citing ‘challenging’ economy
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