Cloudy Day for Enphase Energy, Perficient Misses: Tech Winners and Losers

NEW YORK (TheStreet) -- The weathercast for Enphase Energy (ENPH) was cloudy with a forecast for more clouds. 

The Petaluma, Calif.-based provider of technology for solar systems received a downgrade by analysts at JPMorgan Chase and saw its shares drop more than 18% to $6.20.

Among other tech winners and losers in Tuesday trading, Perficient (PRFT) was not proficient in meeting expectations for its latest quarter and revised its predictions downward for the year. However, Fuel Systems Solutions (FSYS), which provides technology and other components for fueling systems, revved upward on a an analyst upgrade.

In a Wednesday morning note, J.P. Morgan dropped Enphase from an overweight to neutral rating. 

Last month, Needham & Company set a buy rating on the stock and price target of $20 a share. But in May analysts from two research groups lowered their price targets to the mid teens and Bank of America downgraded the company from neutral to underperform and cut its price target from $16.50 to $10.50 a share. 

The company designs and sells microinverters to convert direct current (DC) to grid-compliant alternating current (AC) in solar systems. Enphase also produces separate devices that transmit information about the performance of solar units. 

After hearing that Perficient would miss its quarterly guidance, investors punished the St. Louis-based firm, which dropped nearly 17% in Wednesday trading to finish at $15.84 a share.

Perficient said that revenue would fall between $108.2 and $109.2 million for its first quarter ending June 30. That was lower than its guidance of $110.5 to $120.9 million. 

The company attributed the change to a delayed start to a major healthcare project and a slower-than-expected timeline in contract execution and project launches. It dropped its 2015 revenue guidance from a range of $470 million to $495 million to a range of $455 million to $475 million.

Perficient is a technology consultancy primarily focused on major U.S. companies. It designs and builds systems for improving such areas as marketing and analytics and customer management using other firms' software products. 

Fuel Systems Solutions climbed 5.9% after Craig-Hallum Capital Group upgraded the company from hold to buy. In March, Lake Street Capital issued a similar upgrade. 

The Santa Ana, Calif.-based company provides components and systems that control the pressure and flow of gaseous alternative fuels, such as propane and natural gas used in internal combustion engines. The company also creates engineering and systems integration services.

In recent years, the company's stock price has been rocked. It finished the day at $7.59 a share, near a 10-year low.

Revenue for its most recent quarter posted May 7 was $63.29 million, a drop of 22% year over year and below the consensus estimate of $73.20 million. 

But the company has implemented a three-year cost-cutting initiative and $25 million stock buy-back plan to help it rebound. 

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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