Enphase Energy's stock dropped 14.2% due to missing Q1 estimates and concerns about tariffs

From Nasdaq: 2025-04-23 14:43:00

Shares of Enphase Energy (NASDAQ: ENPH) fell 14.2% as the Nasdaq Composite rose 2.6%. Enphase missed Q1 estimates and guided below for Q2, with tariffs posing a threat to margins later in the year. Revenue grew 35.2% to $356.1 million, with adjusted earnings per share at $0.68. Expectations were higher at $362 million and $0.73 EPS. Enphase forecasts flat revenue this quarter, with a 2% gross margin hit from tariffs. The company currently benefits from IRA subsidies, but faces uncertainty due to potential policy changes. Stock is 84% off all-time highs and trading at low valuations.

Enphase Energy missed analyst estimates in Q1 and guided below for Q2. The company faces challenges from tariffs impacting margins and receives significant IRA subsidies. While Enphase’s stock has dropped significantly, it still trades at relatively low valuations. The company receives over 10 percentage points in gross margin boosts from IRA, along with tax credits and growth incentives. However, the potential for policy changes adds uncertainty. Analysts did not include Enphase in their top 10 stock recommendations. Stock Advisor’s total average return is 811%, outperforming the S&P 500.



Read more at Nasdaq: Why Enphase Plunged On A Day When the Markets Surged