For a while, Enphase Energy (NASDAQ:ENPH) was looking like the future of solar stocks. That was especially true after new remarks from Piper Sandler gave Enphase a solid outlook. Then Enphase’s earnings report came out, and it all went downhill from there. How far downhill? How’s down about 25% in Wednesday afternoon’s trading sound?
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At first glance, the plunge in Enphase’s share price is unfathomable. Enphase’s earnings turned in beats all around and by pretty healthy margins, too. Enphase posted earnings per share of $1.37, which handily beat projections calling for $1.21 per share. Revenue was also a beat, coming in at $726.02 million against projections looking for $720.51 million. Perhaps most amazingly of all, Enphase turned in revenue that was up 64.5% year-over-over.
The big problem for Enphase, which sent it and several other solar stocks tumbling, was its future projections. Enphase looked to bring in between $700 million and $750 million, which didn’t match up against analyst consensus looking for $760 million. Maxeon Solar (NASDAQ:MAXN) was down just over 11%, while SolarEdge (NASDAQ:SEDG) was down 9%. Sunrun (NASDAQ:RUN) slipped 6.75%, and Sunnova Energy (NYSE:NOVA) lost 6.11%.
Of the aforementioned stocks, analysts expect the least from Maxeon, with a Moderate Buy consensus rating and just 6.15% upside potential. However, Sunnova fares much better; it’s considered a Strong Buy by analysts, and its $33.37 average price target gives it a hefty 99.22% upside potential.
