Enphase Energy Inc. (ENPH) announced its first-quarter financial results on Tuesday after the market closed. The energy company reported revenue of $263.3 million, falling short of the consensus estimate of $281.95 million. Adjusted earnings per share came in at 35 cents, also missing analyst expectations of 40 cents per share.
U.S. revenue witnessed a significant decline of approximately 34% year-over-year, while revenues in Europe surged by around 70%. The company attributed the decline to seasonality and weakening U.S. demand, as well as efforts to reduce channel inventory.
Enphase reported a gross margin of 43.9%. It generated $49.2 million in cash flow from operations and $41.8 million in free cash flow during the quarter. As of the quarter’s end, the company had $1.63 billion in cash, cash equivalents, and marketable securities.
For the second quarter, Enphase anticipates revenue between $290 million and $330 million, lower than analysts’ estimates of $350.706 million. The company also expects a gross margin of 42% to 45%.
Shares of Enphase initially reacted negatively to the results, falling 5.14% in after-hours trading to $107.65. Investors were concerned about the weaker-than-expected results and the company’s cautious outlook for the second quarter. Management will hold a conference call at 4:30 p.m. ET to discuss the results further.
