Back to top

Image: Bigstock

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

Read MoreHide Full Article

Enphase Energy, Inc. (ENPH - Free Report) is set to report second-quarter 2020 results on Aug 4, after market close.

In the last reported quarter, the company delivered an earnings surprise of 18.75%. Moreover, the bottom line outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average being 23.85%.

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

Factors at Play

During the second quarter, there were industry reports that showed a 30-50% drop in U.S. residential installations in April with New York and California recording the maximum declines. As this pandemic-caused downside further induced a near-term demand and supply-chain disruption in the period to be reported, it is likely that the company’s overall quarterly revenues might have taken a hit from such unfavorable events.

Consequently, the Zacks Consensus Estimate for second-quarter revenues is pegged at $124.4 million, indicating a 7.3% decrease from the figure reported in the year-ago quarter.

Additionally, the continued bleak demand situation in the June quarter might have hampered the shipments of products manufactured by Enphase Energy. This suggests that the finished products are lying idle in the warehouse or storage facilities of the company which in turn, is expected to have escalated its quarterly storage or idle facility cost. Further, this might have dragged down Enphase Energy’s bottom line in the soon-to-be-reported quarter.

As a result, the Zacks Consensus Estimate for second-quarter earnings is pegged at 14 cents per share, implying a deterioration of 22.2% from the year-earlier quarter’s reported figure of 18 cents.

What the Zacks Model Unveils

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 odds of an earnings beat. But that’s not the case here as elaborated below.

Enphase Energy has an Earnings ESP of -13.25% and a Zacks Rank #2, currently.  You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Enphase Energy, Inc. Price and EPS Surprise

Canadian Solar (CSIQ - Free Report) carries a Zacks Rank of 2 at present and is scheduled to post second-quarter 2020 results on Aug 7. You can see the complete list of today’s Zacks #1 Rank stocks here.

First Solar (FSLR - Free Report) currently has a Zacks Rank #3 and is set to release second-quarter 2020 results on Aug 6.

Vivint Solar is presently Zacks #3 Ranked and is scheduled to post second-quarter 2020 results on Aug 5.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


First Solar, Inc. (FSLR) - $25 value - yours FREE >>

Canadian Solar Inc. (CSIQ) - $25 value - yours FREE >>

Enphase Energy, Inc. (ENPH) - $25 value - yours FREE >>

Published in