Shares of Enphase Energy Inc. dropped 17.1% in after-hours trading on Thursday, reaching a three-year low. The solar and battery systems company failed to meet third-quarter revenue expectations and provided a disappointing forecast for the current quarter due to a slowing economy in the U.S. and softening demand in Europe.
Enphase Energy reported a net income of $113.95 million, or 80 cents per share, compared to $114.8 million, or 80 cents per share, in the same period last year. Adjusted earnings per share, excluding nonrecurring items, stood at $1.02, surpassing the FactSet consensus of $1.01.
However, revenue declined by 13.2% from the previous year to $551.1 million, falling short of the FactSet consensus of $565.8 million. Moreover, it dropped by 22.5% compared to the second quarter. Revenue in the U.S. experienced a decline of 16% while European revenue saw a steep drop of 34%.
Looking ahead to the fourth quarter, Enphase Energy expects revenue in the range of $300 million to $350 million. This forecast significantly lags behind the current FactSet consensus of $579 million.
The stock of Enphase Energy has faced a sharp decline over the past three months, plummeting by 44.5% as of Thursday’s closing bell. In comparison, the broader market index S&P 500 has experienced a modest decline of 9.4%.
Despite its recent challenges, Enphase Energy Inc. remains determined to navigate through the headwinds created by the current economic slowdown and softening demand in key markets.