Enphase Energy Shares Plunge Over Q4 Outlook, Legal Investigation

Enphase Energy reported strong third-quarter revenue of $410.4 million, its highest in two years, driven by robust U.S. demand and a record quarter for battery shipments, which initially boosted investor confidence. However, the company issued a fourth-quarter revenue guidance of $330 million, significantly below analyst estimates, due to elevated battery inventory levels and international challenges, notably in Europe. This contrast between strong past performance and a weak outlook triggered a sharp decline in Enphase's stock, which has since fallen over 67% from its 52-week high. The company is also facing legal scrutiny as a law firm launched investigations into potential securities violations amid the stock's sell-off. Analyst sentiment has turned cautious, with several firms downgrading their ratings and lowering price targets, reflecting concerns about demand slowdown and the expiration of solar tax credits impacting future growth. Despite operational strengths and margin improvements, these headwinds have cast doubt on Enphase's near-term trajectory and investor confidence.