Enphase Energy to report Q3 earnings amid soft solar demand

Enphase Energy (NASDAQ:ENPH) is scheduled to announce Q3 earnings results on Tuesday, October 28, after market close, with investors watching for signs of recovery amid weak U.S. solar demand.

Wall Street expects earnings of $0.66 per share, up 1.5% from a year earlier, on revenue of $369.6 million, down 3% year over year.

Recently, Mizuho downgraded Enphase Energy to Neutral from Outperform, cutting its price target to $37 from $50, citing weaker U.S. residential solar demand and declining market share amid changes to federal tax credits. The firm said growth visibility remains limited as new financing models gain traction slowly and cost savings from the upcoming IQ9 technology are largely confined to the commercial segment.

During the quarter, the company launched its IQ EV Charger 2 in Australia and New Zealand, announced new safe harbor agreements, and expanded its virtual power plant and smart battery programs in Europe and the Netherlands.

Shares of California-based solar battery manufacturer came under pressure after the company issued a weak third-quarter outlook and raised concerns about tariffs and slowing U.S. home solar demand. The stock also moved alongside broader clean energy peers as changing policy guidance and political comments continued to weigh on sentiment toward the sector.

An analyst said Enphase faces “mounting headwinds from rising rates, expiring tax credits, and intensifying competition from Tesla in solar inverters and batteries,” adding that despite a strong balance sheet, “I see it as a potential value trap due to eroding competitive fundamentals and policy risks.

Over the last two years, ENPH has beaten EPS estimates 38% of the time and has beaten revenue estimates 25% of the time.

In the last three months, EPS estimates have seen nine upward revisions and two downward. Revenue estimates have seen eight upward revisions and two downward.

ENPH has gained 1.94% in the past month, but remain 47.25% down, year-to-date.

The Wall Street Analysts as well as Seeking Alpha authors see Enphase as Hold.