ENPH Stock: What’s Sucking the Energy Out of Enphase Today?

Enphase Energy (NASDAQ:ENPH) stock is losing power on Wednesday following an update from the company after-hours on Tuesday.

mobile phone screen with enphase energy logo on it to represent renewable energy stocks

Source: IgorGolovniov / Shutterstock.com

Here’s everything investors need to know about why ENPH stock is falling today.

  • The dropping share price for ENPH comes after the release of the company’s earnings report.
  • However, it doesn’t have to do with its results.
  • Enphase Energy was able to beat out adjusted earnings per share estimates of 41 cents with its 56 cents result.
  • Adjusted EPS reported in the first quarter of 2020 were 38 cents.
  • It also brought in revenue of $301.75 million, which was also better than what Wall Street was expecting.
  • Revenue from the same time last year was $205.55 million.
  • That might have some investors wondering why ENPH stock is down today.
  • It all has to do with comments from management during the company’s earnings call.

Badrinarayanan Kothandaraman, president and CEO of Enphase Energy, said this in its earnings call, as transcribed by CNBC.

“Looking to Q2, our shipment volumes will be constrained by semiconductor component availability. Although we are increasing the capacity of solar microinverters every quarter and the demand is increasing every quarter, the supply is unable to keep up with demand because of semiconductor constraints, component constraints.”

All of this news has ENPH stock seeing incredibly high trading on Wednesday. As of this writing, more than 10 million shares of the stock have changed hands. That’s multiple times more than the stock’s daily average trading volume of 3.2 million shares.

ENPH stock was down 13.2% as of Wednesday afternoon and is also down 13.8% since the start of the year.

While Enphase Energy might be seeing the most drastic effects from its earnings report today, it’s not the only coming releasing results.

Then we have to take into account other earnings reports on the way that could mean major shifts for share prices. Some examples of all of these include Shopify (NYSE:SHOP), Nio (NYSE:NIO), Tesla (NASDAQ:TSLA), and several others. Investors can learn more about these earnings by checking out the links below.

More Earnings News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


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