Enphase Energy (NASDAQ:ENPH) saw its shares plummet first thing Wednesday, after reporting disappointing revenue guidance for the second quarter. The company said Tuesday its upcoming quarterly revenue will range from $700 to $750 million, compared to the expected $765.2 million from analysts surveyed by StreetAccount. Enphase reported adjusted earnings of $1.37 per share on $726 million in revenue, beating StreetAccount forecasts of earnings of $1.21 per share on $724.4 in revenue.
Further, the company’s profitability jumped, as the net income rose to $146.9 million while its free cash flow came in at $223.8 million. The company’s cash and short-term investments increased to over $1.78 billion during the quarter.
However, the Enphase stock price crashed by more than 15% in the pre-market after the firm delivered lower forward guidance. It now expects that its gross margin will be between 41% and 44% while its revenue will be between $700 million and $750 million. Analysts were expecting the company’s revenue and profits to be much higher. The statement added:
“We exited the first quarter of 2023 with $1.78 billion in cash, cash equivalents, and marketable securities and generated $246.2 million in cash flow from operations in the first quarter of 2023. Our capital expenditures were $22.5 million in the first quarter of 2023.”
ENPH shares descended $52.69, or 23.9%, to $167.91.
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