Enphase Energy's forecast for the fourth quarter revenue is below expectations, signaling a tariff increase

Enphase Energy's fourth-quarter revenue was below Wall Street expectations on Tuesday. The company also said that U.S. president Donald Trump's tariffs negatively affected its margins. Shares of the solar inverter manufacturer fell over 8% following hours.

The tariffs are expected to have a negative impact on the company's margins in the current quarter.

Enphase said on a call after earnings that it expected limited exposure to recent China-related duties as the company's supplies chain is moving away from China.

Enphase pays tariffs of over 40% on cell packs imported from China.

U.S. Trade officials finalized in April steep tariffs on the majority of solar cells imported from Southeast Asia after American manufacturers complained about companies from the area flooding the market unfairly with cheap goods.

Enphase Energy and other renewable energy companies are also faced with uncertainty after the passage of Trump’s One Big Beautiful Bill Act, which accelerates phase-outs of clean energy tax credit.

Enphase Energy expects its fourth-quarter revenues to range between $310 and $350 millions, the midpoint falling below analyst expectations of $382.96million, according data compiled by LSEG.

The company forecasts a fourth-quarter gross profit margin between 42 and 45 percent, including a tariff impact of about 5 points.

The company exceeded third-quarter expectations as revenues from the U.S. grew 29% compared to the previous quarter.

The company reported a profit adjusted to 90 cents for the third quarter ending September 30 compared to estimates of 65 cents. (Reporting from Bengaluru by Sumit S. Saha; editing by Maju Samuel.)

(source: Reuters)