This Solar Stock Continues to Correct After a Massive Rally
Shares of Enphase Energy (ENPH:US) continued to move lower last week despite the solar company delivering solid results and offering a better-than-expected outlook.
Enphase saw its stock fall on Wednesday, erasing gains from after-hours Tuesday following the company’s fourth-quarter earnings report. Enphase posted adjusted earnings per share (EPS) of $1.51 on revenue of $724.7 million, easily ahead of analysts' expectations for earnings of $1.24 per share on revenue of $707.5 million.
For this quarter, Enphase said it expects to generate revenue of $720 million (up or down $20 million), beating the consensus of $674.6 million. Despite this strong forecast, Enphase shares fell as market participants seem to be worried about near-term visibility.
“We began manufacturing Enphase-branded electric vehicle (EV) chargers at our contract manufacturing facility in Mexico, helping us to increase capacity and reduce costs. We expect to introduce IQ smart EV chargers to customers in the United States in the first half of 2023,” Enphase said in a filing.
Enphase stock staged a massive rally last year as it was up more than 160% from January 2022 to December, when the stock peaked and printed its all-time high. In the meantime, Enphase shares have corrected about 37%.
The dip in stock was used by Congress members Ro Khanna and Josh Gottheimer, both buying shares in January and February last year. Mr. Khanna bought more shares in November before selling some shares in January this year at levels higher than the current market price.
