Enphase Energy's forecast for third-quarter revenue is below expectations, and shares fall

Enphase Energy's third-quarter revenue was below Wall Street expectations on Tuesday. President Donald Trump's tariffs on imports had an impact on its gross margin. The solar inverter manufacturer's shares fell more than 7% following hours.

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 and other renewable energy companies are also faced with significant uncertainty, as Trump pushes for the repeal or modification of tax credits for solar energy and wind energy projects.

The massive budget bill passed by the Senate this month will make wind and solar projects more difficult to develop. The bill drastically reduces the 30% tax credit that developers were relying on to fund future solar and wind energy projects.

Enphase Energy expects its third-quarter revenues to be between $330 and $370 millions, the midpoint being below analyst expectations of $369.7million, according data compiled by LSEG.

The company has also predicted that the gross margin for the third quarter will be between 41% and 44 %, which is lower than 46.9% in the second.

The company's second-quarter profits exceeded expectations as it benefited from a strong structural demand within the solar industry.

It reported an adjusted profit per share of 69 cents for the quarter ending June 30 compared to estimates of 62. Reporting by Khusbu Jennifer; Editing and proofreading by Devika Syamnath

(source: Reuters)