Here's Why Enphase Energy Is Collapsing Today
Shares of Enphase Energy (NASDAQ: ENPH) fell as much as 26.2% today after the company reported third-quarter 2019 operating results. The solar hardware developer turned in a solid performance, growing revenue 131% from the year-ago period to $180 million and expanding operating margin to an all-time high of 18.7%. It beat Wall Street expectations on both revenue and adjusted earnings per share (EPS). And it expects to achieve $200 million in quarterly revenue for the first time ever in the fourth quarter.
So, why are shares crashing today? Believe it or not, Wall Street is worried that growth may be slowing. Believe it or not, that may be the case, but only if investors adopt a short-term mindset. It primarily comes down to two factors: Europe and safe-harbor revenue from the solar investment tax credit (ITC).
As of 10:31 a.m. EDT, the stock had settled to a 23.9% loss.
Source Fool.com
