(Reuters) -Solar inverter maker Enphase Energy on Tuesday missed analysts’ estimates for first-quarter profit, hit by softening U.S. demand, and forecast second-quarter revenue below market estimates.
Shares dropped 12.5% in after market trading.
The company’s battery shipments rose in the reported quarter from a year earlier, but fell short of analysts’ expectations as softening demand and a metering reform introduced in 2023 in top U.S. market California dented demand for Enphase’s inverters used in residential solar units.
Fremont, California-based Enphase’s quarterly revenue rose 35% to $356.1 million in the quarter ended March 31 from a year earlier, but fell short of estimates of $360.9 million.
The company expects second-quarter revenue to be between $340 million and $380 million, the midpoint of which is below analysts’ expectations of $376 million.
Earlier on Tuesday, U.S. trade officials finalized steep tariff levels on most solar cells from Southeast Asia, a key step toward wrapping up a year-old trade case in which American manufacturers accused Chinese companies of flooding the market with unfairly cheap goods.
Enphase reported an adjusted profit of 68 cents per share for the January to March quarter, compared with analysts’ estimate of 70 cents per share, according to data compiled by LSEG.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Shailesh Kuber)
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