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Enphase Energy (ENPH) Q2 Earnings Beat, Revenues Drop Y/Y
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Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2020 adjusted earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate of 14 cents by 21.4%. The bottom line however declined 55.3% from 38 cents reported in the prior-year quarter.
Including one-time adjustments, the company posted GAAP loss of 38 cents per share against earnings of 8 cents in the year-ago quarter. The year-over-year downside can be primarily attributed to revenue decline in the second quarter.
Revenues
Enphase Energy’s second-quarter revenues of $125.5 million beat the Zacks Consensus Estimate of $124.4 million by 0.9%. The top line however declined 6.4% from the year-ago quarter’s $134.1 million. Quarterly revenues came within the guided range of $115-$130 million.
Enphase Energy, Inc. Price, Consensus and EPS Surprise
Enphase Energy’s total shipments during the reported quarter amounted to approximately 355 megawatts DC or 1,087,662 microinverters.
Gross profit totaled $48.4 million, up 6.8% from $45.3 million a year ago.
Total operating expenses increased 25.7% year over year to $37.5 million. This can be attributed to higher research and development, sales and marketing, as well as general and administrative expenses.
Operating income during the quarter totaled $10.9 million compared with $17.4 million in the year-ago quarter.
Financial Performance
Enphase Energy had $607.3 million of cash and cash equivalents, as of June 30, 2020, up from $251.4 million at the end of 2019.
Cash flow from operating activities amounted to $64.7 million at the end of second-quarter 2020 compared with $31.8 million in the year-ago period.
Q3 Guidance
For third-quarter 2020, Enphase Energy expects revenues of $160-$175 million. The Zacks Consensus Estimate for the same is pegged at $152.8 million, below the guided range.
Adjusted operating expenses are expected between $28 million and $30 million, excluding approximately $13 million estimated for stock-based compensation expenses, acquisition-related expenses and amortization.
Adjusted gross margin is likely to be in the range of 37-40%.
Canadian Solar (CSIQ - Free Report) carries a Zacks Rank #2 and is set to release second-quarter results on Aug 7.
ReneSola (SOL - Free Report) carries a Zacks Rank #3 and is expected to post second-quarter 2020 results soon.
JinkoSolar Holdings (JKS - Free Report) carries a Zacks Rank #3 and is expected to post second-quarter 2020 results soon.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Enphase Energy (ENPH) Q2 Earnings Beat, Revenues Drop Y/Y
Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2020 adjusted earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate of 14 cents by 21.4%. The bottom line however declined 55.3% from 38 cents reported in the prior-year quarter.
Including one-time adjustments, the company posted GAAP loss of 38 cents per share against earnings of 8 cents in the year-ago quarter. The year-over-year downside can be primarily attributed to revenue decline in the second quarter.
Revenues
Enphase Energy’s second-quarter revenues of $125.5 million beat the Zacks Consensus Estimate of $124.4 million by 0.9%. The top line however declined 6.4% from the year-ago quarter’s $134.1 million. Quarterly revenues came within the guided range of $115-$130 million.
Enphase Energy, Inc. Price, Consensus and EPS Surprise
Enphase Energy, Inc. price-consensus-eps-surprise-chart | Enphase Energy, Inc. Quote
Operational Highlights
Enphase Energy’s total shipments during the reported quarter amounted to approximately 355 megawatts DC or 1,087,662 microinverters.
Gross profit totaled $48.4 million, up 6.8% from $45.3 million a year ago.
Total operating expenses increased 25.7% year over year to $37.5 million. This can be attributed to higher research and development, sales and marketing, as well as general and administrative expenses.
Operating income during the quarter totaled $10.9 million compared with $17.4 million in the year-ago quarter.
Financial Performance
Enphase Energy had $607.3 million of cash and cash equivalents, as of June 30, 2020, up from $251.4 million at the end of 2019.
Cash flow from operating activities amounted to $64.7 million at the end of second-quarter 2020 compared with $31.8 million in the year-ago period.
Q3 Guidance
For third-quarter 2020, Enphase Energy expects revenues of $160-$175 million. The Zacks Consensus Estimate for the same is pegged at $152.8 million, below the guided range.
Adjusted operating expenses are expected between $28 million and $30 million, excluding approximately $13 million estimated for stock-based compensation expenses, acquisition-related expenses and amortization.
Adjusted gross margin is likely to be in the range of 37-40%.
Zacks Rank
Enphase Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Solar Releases
Canadian Solar (CSIQ - Free Report) carries a Zacks Rank #2 and is set to release second-quarter results on Aug 7.
ReneSola (SOL - Free Report) carries a Zacks Rank #3 and is expected to post second-quarter 2020 results soon.
JinkoSolar Holdings (JKS - Free Report) carries a Zacks Rank #3 and is expected to post second-quarter 2020 results soon.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>