Enphase Energy (ENPH) Stock Is Lower Today After Announcing Fourth-Quarter Guidance

NEW YORK (TheStreet) -- Shares of Enphase Energy (ENPH) 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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

ENPH Chart ENPH data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

General Electric Booted From Dow, Replaced by Walgreens

General Electric Booted From Dow, Replaced by Walgreens