Enphase Slides on Weak Guidance, Tariffs

Enphase Energy ENPH slid in early trading after it warned Q3 revenue will land between $330 million and $370 million versus the $368.35 million analysts expected.

The solar inverter maker said IQ Battery shipments of 190210 MWh are baked into that outlook, fueling a 10 % premarket drop and leaving shares down 38 % YTD.

CEO Badri Kothandaraman noted that the U.S. slapped a 30 % tariff on Chinese imports in May after threatening a 145 % levy, trimming the margin headwind from an initial 6% to 8 % to 3% to 5 %.

Enphase now forecasts GAAP gross margins of 41 % to 44 % and adjusted margins of 43 % to 46 %, factoring in IRA benefits.

Tariffs still bite more on batteries than microinverters, though the company is diversifying its supply chain and mapping a path to non?China cell sourcing.

Analysts pressed management on how channel inventory and tariff risks could be offset, signaling cautious optimism but lingering concerns.