Jim Cramer on Tesla and Other Stocks

8. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 42

Cramer commented on the beaten-down stock of Enphase Energy, Inc. (NASDAQ:ENPH), saying:

“Enphase has just been clobbered already… It was clobbered because Europe cut back the subsidies… They surprised everybody. They should have communicated that. I don’t want you to sell it all the way down here.”

Enphase Energy (NASDAQ:ENPH) is engaged in designing, developing, manufacturing, and selling energy solutions for the solar photovoltaic sector. The company shared its third-quarter financial results on October 22, revealing significant declines in both revenue and net income. Revenue reached $380.9 million, an increase from $303.5 million in the second quarter of 2024 but showing a significant drop of 31% compared to the same period last year.

U.S. revenue increased by around 43% from the previous quarter, fueled by stabilized inventory levels among distributors and a rise in product shipments. However, challenges in the European market contributed to a 15% sequential decline in revenue, highlighting issues such as regional slowdowns and regulatory uncertainties, particularly in the Netherlands. Despite these setbacks, the company demonstrated strong financial health with a free cash flow of $161.6 million and total liquidity of $1.77 billion, ensuring a stable financial position moving forward.

For the fourth quarter of 2024, Enphase Energy (NASDAQ:ENPH) expects revenue to fall between $360 million and $400 million, which is slightly lower than the previous quarter’s midpoint. Additionally, the company anticipates a GAAP gross margin in the range of 47% to 50%.