According to the Financial Intelligence APP, global leader in microinverters Enphase Energy (ENPH.US) announced lower-than-expected performance and guidance, leading to a more than 11% plunge in the stock price after hours.

The financial report shows that the company's net income for the third quarter dropped from $0.11395 billion (or $0.80 per share) in the same period last year to $45.76 million (or $0.33 per share); GAAP gross margin decreased from 47.5% to 46.8%, non-GAAP gross margin decreased from 48.4% to 48.1%, including a 9.2% net income from IRA.

Due to further softening demand in the European continent, Enphase's third-quarter revenue decreased by 15% compared to the previous quarter. The demand for residential solar energy in Europe has deteriorated due to declining electricity prices and increased competition in major markets like the Netherlands and Germany. However, Enphase's largest market, the USA, saw a revenue increase of 43% compared to the previous quarter; global microinverter shipments decreased by 55% year-on-year, to 1.73 million units.

Looking ahead, Enphase expects fourth-quarter revenue to be between $0.36 billion and $0.4 billion, lower than analysts' expectation of $0.4335 billion. The non-GAAP gross margin is projected to be between 49% and 52%, including IRA net income. The gross margin excluding net IRA benefits is expected to be between 39% and 42%.

The company also expects to start shipping domestically produced commercial microinverters and batteries with higher domestic content from its US contract manufacturing facility in the fourth quarter.

Enphase's weak performance also led to a general decline in the solar sector, with SolarEdge Technologies (SEDG.US) falling nearly 4%, Sunrun (RUN.US) falling nearly 2%, and First Solar (FSLR.US) dropping over 1% in post-market trading on Tuesday.