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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