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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