Enphase misses Q3 estimates and guides Q4 well below consensus, shares tumble after hours
What happened
Enphase reported Q3 revenue of $293.3 million, only slightly above the prior quarter and well short of analyst estimates near $305 million, landing near the low end of its own $290-320 million guidance. Adjusted EPS was $0.41, missing a roughly $0.50 consensus, and GAAP diluted EPS was $0.17. Global sell-through rose only about 1% sequentially, far below the company's roughly 10% expectation. Q4 revenue guidance of $225-255 million came in well below the $297.6 million consensus and assumes sell-through declines 10% from Q3. CEO Badri Kothandaraman said U.S. sell-through rose a modest 5% sequentially but fell 35% year over year, in line with broader residential solar permit declines, blaming elevated interest rates and the expiration of the 30% tax credit; European revenue fell about 11% sequentially, particularly in France. Shares tumbled about 14-16% in after-hours trading.
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Start your free 14-day trialWho’s affected
- ENPH (direct; Q3 miss plus weak Q4 guide drove a 14-16% after-hours tumble)
- SEDG and other residential solar names (same tax-credit expiry, rates and permit headwinds)
- Solar installers and solar ETFs (sell-through weakness flows straight into installer volumes)
- Home-improvement and housing-adjacent discretionary names (same rate-sensitive consumer backdrop)