What happened 

Shares of microinverter manufacturer Enphase Energy Inc. (NASDAQ:ENPH) fell as much as 15.5% in trading Wednesday after reporting second-quarter earnings. At 11:55 a.m. EDT, shares were still down 14.3% on the day. 

So what

Revenue was up 1.6% to $75.9 million, and net losses declined 27.1% to $3.7 million, or $0.04 per share. On a non-GAAP basis, earnings were $0.02 per share, a penny ahead of expectations. 

Roof with solar panels.

Image source: Getty Images.

Where investors got disappointed was third-quarter guidance of $76 million to $82 million on revenue. Analysts were expecting $84.5 million in revenue next quarter and $0.04 in EPS, which will be tough to hit if revenue doesn't grow significantly next quarter. 

Now what

Enphase Energy's stock has been on a roll in 2018, climbing 112% even after today's drop. As the stock has risen, investor expectations have gone up as well. What we're seeing today is Enphase "disappointing" investors, when this is really just showing where demand is actually coming in, versus the speculation that's driven the stock. I don't think today's pullback is a reason to panic, but rather a case of bringing future expectations back to reality. Enphase Energy is still well positioned to be a growth stock in solar for years to come. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.