Shares of Enphase Energy (ENPH) fell sharply in premarket trading Wednesday, a day after the solar and battery systems provider's first-quarter results fell short of analysts' estimates and it warned of an expected hit to gross margins because of tariffs on China.

The Fremont, Calif.-based energy technology firm reported adjusted 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) of $0.68 on revenue of $356.1 million. Analysts polled by Viꦉsible Alpha were looking for $0.73 and $362 million, respectively.

On the earnings call, CEO Badri Kothandaraman said the firm anticipates a hit to its future results because of tariffs, according to a transcript provided by AlphaSense. "We currently source battery cell packs from China," Kothandaraman said. "These tariffs are expected to reduce our gross margin by approximately 2% in Q2 of 2025. The effect of the tariffs is limited in Q2 due to us having pre-tariff inventory."

"Starting in Q3, we anticipate a 6% to 8% total gross margin impact after accounting for pricing adjustments," Kothandaraman added. "We expect the gross margin impact to gradually lessen over the subsequent quarters as our mitigation efforts take effect."

Shares dropped over 11% in premarket trading. They entered the day down more than 20% in 2025.