- Following Q2 2018 earnings and other recent developments, Prescience Point continues to believe that Enphase Energy's purported turnaround under its new CEO is a sham.
- Our analysis of ENPH's Q2'18 results indicates further doubt on the reliability of its financial statements.
- Management tried to explain away some of the red flags highlighted in our Initiation Report; however, management's explanations in some cases conflict with statements previously made on the record and in other cases defy logic.
- Despite our doubts about the reliability of its accounting, ENPH still missed Q2 consensus estimates and whiffed on guidance. The 12.9% and 8.9% YoY decline in ENPH's Q2'18 inverter volume and adjusted revenue, respectively, indicate that its business is deteriorating at a faster pace than we initially thought.
- According to sources, former SunEdison CEO Ahmad Chatila is currently working for ENPH. ENPH appears to have adopted many of the same practices which ultimately led to SUNE's downfall.
- Prescience Point reiterates our estimate that Enphase stock is worth ~$1/share on a fundamental basis, implying 80% downside.
PR Newswire
BATON ROUGE, La., Aug. 15, 2018
