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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 set to report second-quarter 2021 results on Jul 27, after market close.

In the last reported quarter, the company delivered an earnings surprise of 36.59%. Moreover, the bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 27.63%.

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

Factors at Play

Enphase Energy has been witnessing a solid uptick in demand across the global solar market over the past few quarters, overcoming the initial challenges posed by the coronavirus outbreak. This is evident as the company's microinverter shipments in the first quarter of 2021 were more than double the shipments made in the second quarter of 2020.

Enphase Energy also has qualified new suppliers for its ASIC and AC FET drivers, which is expected to have resulted in increased shipments for the second quarter compared to the first quarter, thus boosting revenues. Meanwhile, at the onset of the second quarter, the company announced the expansion of its Enphase Installer Network (EIN) in Europe, by launching the network in the Netherlands and Belgium. This might have also contributed favorably to the company’s overall quarterly revenues.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $314 million, indicating a 150% surge from the figure reported in the year-ago quarter.

Disciplined pricing and effective cost management initiatives are expected to have benefited the company’s gross margin performance in the second quarter. This, along with Enphase Energy’s revenue growth expectations, is likely to have bolstered its Q2 earnings performance.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 42 cents per share, implying a 147.1% surge from the year-earlier quarter’s reported figure.

However, constraints in semiconductor component availability might have continued to adversely impact Enphase Energy’s second-quarter performance.

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: The company’s Earnings ESP is -6.21%. 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.

Upcoming Solar Releases

First Solar (FSLR - Free Report) is scheduled to post second-quarter 2021 results on Jul 29.

SunPower Corporation (SPWR - Free Report) is set to release second-quarter numbers on Aug 3.

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