April 25 (Reuters) – Enphase Power Inc (ENPH.O) reported market-beating revenue within the first quarter on robust gross sales in Europe, however forecast second-quarter income beneath Wall Avenue expectations, sending its shares down as a lot as 17% in prolonged buying and selling on Tuesday.
The corporate expects second-quarter income between $700 million and $750 million, beneath analysts’ estimate of $773 million, in line with Refinitiv knowledge.
Pavel Molchanov, an analyst at Raymond James, sees web metering reform in California creating headwinds within the second quarter for Enphase, however stated that “the corporate is doing extraordinarily effectively in Europe”, with the 2 elements “primarily cancelling one another out.”
The brand new coverage modifications the so-called “web metering”, a decades-old coverage, which permits owners with photo voltaic panels to promote the surplus energy to their utility at or close to the complete retail charge.
U.S. imports of photo voltaic panels have picked up currently after months of gridlock stemming from implementation of a brand new legislation banning items made with compelled labor, Reuters reported in March.
Through the first quarter, IQ8 Microinverters, used to transform solar energy into usable AC energy, constituted about 65% of all of Enphase’s microinverter shipments.
It shipped 4.8 million microinverters, up 71% from the identical quarter final 12 months. Battery shipments of 102.4 megawatt hours throughout the quarter, nevertheless, fell 16% from final 12 months.
The Fremont California-based firm stated its earnings stood at $1.37 per share, beating common analysts’ estimate of $1.20 per share.
Income rose 65% to $726 million, primarily as a consequence of greater gross sales in Europe. Enphase in February had anticipated first-quarter income within the vary of $700 million to $740 million.
Raymond James’ Molchanov sees income rising within the second half of the 12 months with the second quarter remaining flat.
The corporate in March stated shipments of its microinverters from Romania are anticipated to start within the second quarter of this 12 months.
Reporting by Arshreet Singh; Enhancing by Shailesh Kuber
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