(Reuters) -Enphase Energy forecast third-quarter revenue below Wall Street estimates on Tuesday and said President Donald Trump’s import tariffs had impacted its gross margin, sending the solar inverter maker’s shares down more than 7% after hours.
U.S. trade officials in April finalized steep tariffs on most solar cells imported from Southeast Asia, after American manufacturers complained that companies from the region were flooding the market with unfairly cheap goods.
Renewable energy companies such as Enphase are also facing significant uncertainty as Trump pushes to repeal or modify tax credits for solar and wind energy projects.
The Senate’s massive budget bill that passed this month will make it harder to develop wind and solar energy projects. The legislation sharply reduces access to a 30% tax credit for solar and wind power projects that had been set to run until 2032, and which developers had relied on for future projects.
Enphase Energy now expects third-quarter revenue of between $330 million and $370 million, with the midpoint coming in below analysts’ expectations of $369.7 million, according to data compiled by LSEG.
The company also forecast third-quarter gross margin of between 41% and 44%, lower than the 46.9% reported in the second quarter.
However, it beat second-quarter profit estimates as the company benefited from strong structural demand in the broader solar industry.
It posted an adjusted profit of 69 cents per share for the quarter ended June 30, compared with estimates of 62 cents.
(Reporting by Khusbu Jena; Editing by Devika Syamnath)
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