Enphase Investors Enraged

Enphase Energy and other solar stock investors are feeling angry after becoming collateral damage to SolarEdge’s earnings outlook. 😡

The solar equipment maker said, “During the second part of the third quarter of 2023, we experienced substantial unexpected cancellations and pushouts of existing backlog from our European distributors.” 

As a result of the material impact on results, it felt the need to warn investors ahead of its full earnings report on November 1st. It now expects third-quarter revenue of $720 to $730 million, down significantly from its $880 to $990 million guidance. Wall Street’s expectations were also 25% higher than these revised levels, at $909 million. 📉

The slashed guidance also pushed its operating income expectations down from $115-$135 million to $12-$31 million. Additionally, it expects significantly lower fourth-quarter revenues as the inventory destocking process continues.

The entire solar industry has been under pressure in the U.S., where higher interest rates and less federal/state policies have weakened residential demand substantially. Now, with the European market also turning cold, growth expectations will have to be further cut across the board. 🔻

Most of the sector is down sharply after the bell, adding to already dismal year-to-date gains. The trend remains lower, with investors unsure what will make them shine bright again. ⛈️

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Speculation Heightens As Jumia Jumps

As we’ve discussed, speculation continues to spread to all corners of the market. Even those areas that have been left for dead for quite some time. Today’s example of this is Jumia Technologies, the “Amazon of Africa” that caught wildfire early in its life before the gravity of reality brought it back down to earth. 🛒

The company reported reducing its losses by over 90% in the fourth quarter as it focused on restoring order and gross merchandise value (GMV) growth. Like other struggling companies, it cut costs significantly and leveraged lower tax provisions to help drive the earnings improvement. 

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Semis Continue To Tower Over Market

Semiconductors continue to dominate the market and thus dominate our headlines. With that said, today we’ve got a fresh stock breaking out and another setting up, so stick with us. 👇

First up is Tower Semiconductor, an Israeli chip manufacturer that reported results today. The company’s revenue fell 13% YoY to $351.7 million during the fourth quarter but topped the $350 million expected by analysts. Its earnings per share were down about 30% YoY to $0.48, but again, better than anticipated. 🔺

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Sellers Unleash On Unity

Video game software developer Unity probably wishes it could reload its last saved checkpoint after reporting another quarter of lackluster earnings. 👾

Although revenues of $609 million topped expectations of $451 million, management noted revenue would have been $510 million if its deferred revenues were not released. Meanwhile, the company’s net loss of $0.66 was narrower than last year’s $0.82 but still much higher than analysts’ $0.46 per share expectation. 🔺

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Lyft’s IR Department Just Whiffed

Investor relations departments are the silent heroes of a public company, receiving little recognition for the critical role they play. When they do receive a lot of attention, it’s generally not for good reason. That’s unfortunately what Lyft’s team is finding out today. 😵‍💫

After the bell, ridesharing company Lyft reported fourth-quarter results that were good, not great. But the stock immediately shot up and notched as high as a 60% gain before anyone realized what happened. Did the company just invent a cure for rare diseases? Are they pivoting to crypto or semiconductors? What was the cause of this?

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