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Enphase Energy (ENPH) to Post Q2 Earnings: What's in Store?

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Enphase Energy, Inc. (ENPH - Free Report) is scheduled to report second-quarter 2022 results on Jul 26 after the closing bell.

In the last reported quarter, the company delivered an earnings surprise of 13.24%. Enphase Energy has a trailing four-quarter earnings surprise of 23.79%, on average.

Factors to Note

The increased demand for ENPH’s Storage Systems, particularly in the United States, is likely to have significantly boosted its shipment growth in the second quarter, thereby bolstering its revenues.

The strong demand for Enphase products in Europe, coupled with the company’s effort to further expand in the region, must have added impetus to its top line. The company expects 40% sequential growth in revenues in the second quarter in Europe, thus giving a strong boost to the revenues of the soon-to-be-reported quarter. Europe and the United States apart, Enphase Energy’s top line may have benefited from its steady performance in Australia, India and Brazil.

Moreover, ENPH’s second-quarter top line is projected to have benefited from the growth of the Enphase installer network and the continued adoption of its high-power IQ 8 microinverters.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $506.6 million, suggesting growth of 60.3% from the year-ago quarter.

However, higher logistics costs, driven by inflation, are likely to have dented the earnings of the company in the soon to-be-reported quarter. However, a slight price increase in the battery segment may have offset the negative impact on the bottom line in the second quarter.

The Zacks Consensus Estimate for second-quarter earningsis pegged at 83 cents per share, indicating an improvement of 56.6% from the prior-year reported figure.

Enphase Energy, Inc. Price and EPS Surprise

Enphase Energy, Inc. Price and EPS Surprise

Enphase Energy, Inc. price-eps-surprise | Enphase Energy, Inc. Quote

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Enphase Energy this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Earnings ESP: ENPH’s Earnings ESP is +6.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Enphase Energy currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are three companies you may also want to consider from the same sectoras they also have the right combination of elements to post an earnings beat this season:

Sunnova Energy International Inc. (NOVA - Free Report) currently has an Earnings ESP of +13.96% and a Zacks Rank #3. The Zacks Consensus Estimate for Sunnova’s second-quarter earnings implies a year-over-year improvement of 26.2% from the prior-year reported figure.

The Zacks Consensus Estimate for Sunnova’s second-quarter sales, pegged at $89.6 million, suggests a year-over-year improvement of 34.7% from the prior-year reported figure. NOVA delivered an earnings surprise of 21.05% in the last reported quarter.

Array Technologies, Inc. (ARRY - Free Report) currently has an Earnings ESP of +77.78% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 5 cents per share.

The Zacks Consensus Estimate for Array’s second-quarter sales suggests year-over-year growth of 73.7% from the prior-year reported figure. ARRY has a four-quarter earnings surprise of 12.14%.

Devon Energy(DVN - Free Report) currently has an Earnings ESP of +8.14% and a Zacks Rank #2. The Zacks Consensus Estimate for Devon Energy’s second-quarter earnings, pegged at $2.31, implies a year-over-year improvement of a solid 285% from the prior-year reported figure.

The Zacks Consensus Estimate for Devon Energy’s second-quarter sales suggests year-over-year growth of 94.3% from the prior-year reported figure. DVN has a four-quarter earnings surprise of 13.38%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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