We recently published 10 Stocks Plunging Fast; 5 Now at All-Time Lows. Enphase Energy, Inc. (NASDAQ:ENPH) is one of the worst-performing stocks on Wednesday.
Enphase declined for a second day on Wednesday, shedding 15.15 percent to close at $31.14 apiece as investors unloaded portfolios after its revenue outlook for the fourth quarter of the year came in below analyst estimates.
In an updated report, Enphase Energy, Inc. (NASDAQ:ENPH) it expects revenues in the last quarter of the year to settle at a range of $310 million to $350 million, falling below consensus estimates of $374.4 million.
GAAP gross margin was also revised to a range of 40 to 43 percent, including approximately five percentage points of reciprocal tariff impact, versus the 41 to 44 percent previously.
Meanwhile, the company reported an impressive earnings performance in the third quarter of the year, with net income increasing by 45.5 percent to $66.6 million from $45.76 million in the same period last year.
Net revenues grew by 7.6 percent to $410 million from $380.87 million year-on-year on the back of higher demand and revenues from safe harbor.
While we acknowledge the potential of ENPH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
