Enphase Energy Cuts 6% of Workforce Amid Tax Credit Expiration
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: seekingalpha
- Job Cuts: Enphase Energy announced a reduction of approximately 160 jobs, representing 6% of its workforce, as part of a restructuring effort to address the impact of the expiration of federal tax credits on residential solar panel demand, which is expected to lead to decreased operational efficiency.
- Cost Reduction Strategy: The company plans to rely on distributors for sales in certain smaller markets while prioritizing research and development in its core products and software, aiming to reduce adjusted quarterly operating expenses to between $70 million and $75 million starting Q3 2026.
- Restructuring Costs: Enphase estimates total restructuring and asset impairment charges of approximately $4.6 million, including $4.2 million expected in Q1, which may exert pressure on the company's short-term financial condition and potentially impact investor confidence.
- Stock Price Fluctuation: Despite a 39% decline in share price over the past year, Enphase Energy has started strong this year with a 23% gain, indicating market interest in its long-term potential despite facing short-term challenges.
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Analyst Views on ENPH
Wall Street analysts forecast ENPH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ENPH is 38.35 USD with a low forecast of 26.00 USD and a high forecast of 67.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
6 Buy
10 Hold
5 Sell
Hold
Current: 39.930
Low
26.00
Averages
38.35
High
67.00
Current: 39.930
Low
26.00
Averages
38.35
High
67.00
About ENPH
Enphase Energy, Inc. is a global energy technology company. The Company is a supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power and control it all with a smart mobile application. It designs, develops, manufactures and sells home energy solutions that manage energy generation, energy storage, and control and communications on one intelligent platform. The Enphase Energy System brings a technology, networked approach to solar generation plus energy storage, by leveraging its design expertise across power electronics, semiconductors and cloud-based software technologies. The Enphase Energy System, powered by IQ Microinverters, IQ Batteries and other products and services, is an integrated solar, storage and energy management offering that enables self-consumption. The Company also offers a predictive software platform dedicated to simplifying the cleantech service landscape.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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