Enphase Energy (ENPH) Plunges Post Earnings: Do You Buy the Dip?

Shares of solar system microinverter maker Enphase Energy

ENPH

fell over 14% on Wednesday after reporting Q1 earnings results. The company beat top and bottom-line estimates but Q2 guidance was weaker-than-expected. Enphase forecasts revenue to come in between $300 million and $320 million; the Street was looking for $320.7 million.

President & CEO Badrinarayanan Kothandaraman also said that Q2 shipment volumes will be negatively impacted by the current chip shortage. ENPH’s decline dragged down other solar stocks like SolarEdge

SEDG

, Sunrun

RUN

, Sunnova

NOVA

, and SunPower

SPWR

.

But big firms like Goldman Sachs

GS

and Barclays

BCS

believe today’s dip is a buying opportunity. Goldman said that “demand and margins remain robust,” and Barclays believes that long-term players will “correctly view” this headwind as temporary.

ENPH gained 571% in 2020 but is down more than 15% so far in 2021.


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