NEW YORK (TheStreet) -- Shares of Enphase Energy (ENPH) - Get Report were falling 22.2% to $12.13 Wednesday after the semiconductor equipment maker forecasted lower gross margin for the fourth quarter.
Enphase said it expects gross margin of 31% to 33% for the fourth quarter, mostly below the 33% gross margin reported for the third quarter, and nearly flat from the year-ago quarter.
The day's losses are in spite of Enphase saying it expects revenue of $98 million to $103 million for the fourth quarter, above analysts' estimates of $94.2 million.
The company reported earnings of 8 cents a share for the third quarter, which beat analysts' estimates of 7 cents. The company said revenue grew 59.7% year over year to $99.1 million for the quarter, beating analysts' estimates of $95.09 million.
TheStreet Ratings team rates ENPHASE ENERGY INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENPHASE ENERGY INC (ENPH) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
You can view the full analysis from the report here: ENPH Ratings Report