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Enphase Energy (ENPH) Q1 Earnings Beat Estimates, Revenues Up Y/Y

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Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2021 adjusted earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents by 36.6%. The bottom line also surged 47.4% from 38 cents reported in the prior-year quarter.

Including one-time adjustments, the company posted GAAP earnings of 22 cents per share compared with 50 cents in the year-ago quarter.

The year-over-year uptick can be attributed to solid revenues and operating income growth in the first quarter.

Revenues

Enphase Energy’s first-quarter revenues of $301.8 million beat the Zacks Consensus Estimate of $293 million by 3.1%. The top line soared 105.2% on solid shipments from the year-ago quarter’s $205.5 million.

Operational Highlights

Enphase Energy’s total shipments during the reported quarter amounted to approximately 830 megawatts DC or 2,452,765 microinverters.

The company concluded two acquisitions — Sofdesk, Inc. and the Solar Design Services business of DIN Engineering Services, LLP — to accelerate its digital transformation.

Gross profit totaled $122.9 million, soaring 52.4% from $80.7 million a year ago.

Total operating expenses surged 71.2% year over year to $61.6 million. This can be attributed to higher research and development, sales and marketing, and general and administrative expenses.

Operating income during the quarter totaled $61.4 million compared with $44.7 million in the year-ago quarter.

Enphase Energy, Inc. Price, Consensus and EPS Surprise

Financial Performance

Enphase Energy had $1,489 million of cash and cash equivalents as of Mar 31, 2021, up from $679.4 million at the end of 2020.

Cash flow from operating activities amounted to $75.8 million in first-quarter 2021 compared with $39.2 million in the year-ago period.

Q2 Guidance

For second-quarter 2021, Enphase Energy expects revenues of $300-$320 million. The Zacks Consensus Estimate for the same is pegged at $318 million, higher than the midpoint of the company’s guided range.

Adjusted operating expenses are expected between $53 million and $56 million, excluding approximately $17 million estimated for stock-based compensation expenses, acquisition-related expenses and amortization.

Adjusted gross margin is likely to be 38-41%.

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

SolarEdge Technologies (SEDG - Free Report) is set to release first-quarter numbers on May 3.

Sunrun (RUN - Free Report) is set to release first-quarter 2021 results on May 5.

SunPower Corporation (SPWR - Free Report) is set to release first-quarter 2021 results on May 5.

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