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Enphase Energy (ENPH) to Post Q4 Earnings: What's in Store?

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Enphase Energy, Inc. (ENPH - Free Report) is set to report fourth-quarter and 2019 results on Feb 18, after market close.

In the last reported quarter, the company delivered a positive earnings surprise of 20%. Moreover, the bottom line outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. The four-quarter beat is 21.28%, on average.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

As Enphase Energy derives majority of its revenues from microinverters, it started ramping up its manufacturing capacity in Mexico to meet the growing demand for solar products. In line with this, during its third-quarter earnings call, the company announced that it has capacity in place for manufacturing 2.5 million microinverters in the fourth quarter.

Considering this, the company is expected to have shipped 2.1-2.2 million microinverters to customers in the to-be-reported quarter. This reflects a solid rise in shipment when compared with the year-ago quarter’s shipment of 0.8 million. Such enhanced shipments are expected to have boosted Enphase’s quarterly revenues significantly in the fourth quarter.

Additionally, during the fourth quarter, Enphase Energy announced the availability of pre-orders for battery storage systems based on its Ensemble energy management technology. This might have also contributed to the quarterly results.

Backed by such developments, the company is expected to deliver solid top and bottom-line growth in the quarter to be reported. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $204.8 million, indicating a surge of 121.9% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for the company’s fourth-quarter earnings is pegged at 33 cents per share, implying a massive improvement of 725% from the year-ago quarter’s 4 cents.

Moreover, we expect the company’s balance sheet to reflect an impressive cash balance figure backed by solid cash flow, which it received as prepayments for the ITC safe harbor product shipment, in the fourth quarter.

Enphase Energy, Inc. Price and EPS Surprise

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Enphase Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here.

Earnings ESP: Enphase Energy has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter .

Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Solar Releases

First Solar (FSLR - Free Report) has a Zacks Rank #3 and is set to release fourth-quarter results on Feb 20.

SolarEdge Technologies (SEDG - Free Report) has a Zacks Rank #3 and is scheduled to report fourth-quarter results on Feb 19.

Vivint Solar carries a Zacks Rank #3 and is expected to post fourth-quarter 2019 results soon.

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