Enphase Energy shares fell about 15.5% in morning trading after third-quarter results missed expectations, with non-GAAP EPS of $0.41 on $293.3 million in sales versus analysts' forecast of $0.51 on $303.8 million. Sales fell 28.5% year over year, gross margin dropped 450 basis points to 43.3%, and operating income fell 90%. The company cited soft U.S. residential solar demand and summer seasonality plus continued weakness in some European solar markets. For the fourth quarter, management guided sales to about $240 million, a sequential decline, with gross margins likely below 40%. The author notes that at 30 times earnings, with earnings still expected to fall, they see little reason to own the stock now.
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