April 23 (Reuters) – Solar inverter maker Enphase Energy on Tuesday forecast second-quarter revenue below analyst estimates, a sign of a slow recovery in demand in its markets.
The Fremont, Calif.-based company expects revenue between $290 million and $330 million for the quarter ending in June, compared with analysts’ average estimate of $348.6 million, according to LSEG data .
Rising inventory levels in Europe and meter reform in the main US market, California, have dampened demand for Enphase inverters used in residential solar units.
The metering reform reduced the credit granted to households equipped with solar panels on their roof for transferring their excess electricity to the grid.
High interest rates, which have lengthened the payback period for solar energy investments, are also hurting demand.
Enphase said in February that it expects inventory levels to normalize and demand for its products to recover by the end of the second quarter.
Microinverter shipments fell 71% to around 1.38 million in the first quarter from a year earlier.
Revenue of $263.3 million missed analysts’ average estimate of $279.8 million.
The company cut its workforce by 10% last year and reduced its manufacturing capacity to sell off excess inventory.
(Reporting by Sourasis Bose and Tanay Dhumal in Bengaluru; editing by Sriraj Kalluvila and Shilpi Majumdar)
