Enphase Energy (ENPH) Drops 2.01% Amid Earnings Miss, Tariff Concerns

Enphase Energy (ENPH) shares rose by 2.36% today, marking the second consecutive day of gains, with a total increase of 3.91% over the past two days. However, the share price fell to its lowest level since June 2020 today, with an intraday decline of 2.01%.

Several factors have contributed to the recent volatility in Enphase Energy's stock price. Notably, Jefferies and GLJ Research have both lowered their price targets for the company. Jefferies reduced its target to $37 from $44, maintaining an Underperform rating due to the company's earnings miss. Similarly, GLJ Research cut its target from $50.69 to $31.11, indicating a projected potential decline in stock value by 32% by the end of 2025.

Enphase Energy's financial performance has also been a significant factor. The company missed its earnings per share (EPS) expectations by 21%, resulting in a 14% drop in stock price. Additionally, the revenue guidance for Q2 2025 is lower than Q1, suggesting potential demand softness, with expected revenue between $340 million to $380 million. The US solar market is facing pressure due to high interest rates and financial challenges, which are affecting customer demand.

Operational and strategic challenges are also impacting Enphase Energy. Newly announced tariffs on products from China are expected to impact gross margins by 6% to 8% starting in Q3 2025. Furthermore, elevated microinverter channel inventory suggests slower sell-through and potential inventory management challenges.

Analysts have reduced their estimates for the quarter, with adjusted guidance falling below consensus expectations. Enphase Energy is currently in a clear downtrend with bearish indicators, and market uncertainties and tariff impacts present ongoing challenges despite new product initiatives. These factors combined contribute to the lagging performance and volatility in Enphase Energy's stock price.