Enphase Energy (NASDAQ:ENPH) shares fell as much as 18% in early Friday trading after the solar company offered a much weaker-than-expected revenue forecast for its third quarter.
For Q2, Enphase reported an adjusted EPS of $1.47 on revenue of $711.1 million, which compares to the consensus for earnings of $1.28 per share on revenue of $725.8M. CapEx soared to $44M while analysts expected just $18.3M (NYSE:MMM).
For this quarter, Enphase sees revenues in the range of $550M-$600M, compared to the consensus for $748M.
The company said its Board has recently authorized a new share repurchase program worth up to $1 billion.
At least two Wall Street analysts downgraded ENPH shares in the aftermath of the results. Wells Fargo analysts cut from Overweight to Equal Weight with a price target of $171.00 (from $230.00).
Similarly, Deutsche Bank analysts downgraded from Buy to Hold with a price target of $165.00 (from $200.00).
The downgrade call from DB comes as the analysts turn "more cautious on the growth profile of the company within the next 6-12 months."
"There is a growing negative backdrop especially when looking at the US residential market and relatively high inventory in the channel, which ENPH is now trying to correct by under-shipping volumes into 3Q. Demand softness in key markets (CA, AZ, TX, FL) coupled with seasonality in Europe will also add pressure on Enphase's Revenue," they said.