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Why Is Enphase Energy (ENPH) Up 8.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Enphase Energy (ENPH - Free Report) . Shares have added about 8.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Enphase Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Enphase Energy Q3 Revenues Beat, Earnings Rise Y/Y
Enphase Energyreported third-quarter 2022 adjusted earnings of $1.25 per share, which improved by a solid 108.3% from the 60 cents reported in the prior-year quarter.
Including one-time adjustments, the company posted GAAP earnings of 80 cents per share, up 433.3% from 15 cents in the year-ago quarter.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 77 cents.
Revenues
Enphase Energy’s third-quarter revenues of $634.7 million beat the Zacks Consensus Estimate of $617 million by 2.9%. The top line soared 80.6% from the year-ago quarter’s $351.5 million, driven by the strong demand for its microinverters and battery systems.
Operational Highlights
Enphase Energy’s total shipments in the reported quarter amounted to approximately 1,709 megawatts (MW) or 4,342,805 microinverters and 133.6 MW hours of Enphase IQ Batteries. The company’s adjusted gross margin expanded 210 basis points year over year to 42.9%.
Adjusted operating expenses escalated by 37.1% year over year to $78.6 million. The adjusted operating income in the quarter soared 125.7% to $193.9 million compared with $85.9 million in the year-ago quarter.
Financial Performance
Enphase Energy had $337.6 million in cash and cash equivalents as of Sep 30, 2022, up from $119.3 million as of Dec 31, 2021.
Cash flow from operating activities amounted to $188 million in the third quarter of 2022 compared with $113.4 million in the third quarter of 2021.
Q4 Guidance
For the fourth quarter of 2022, ENPH expects revenues in the range of $680-$720 million. The Zacks Consensus Estimate for the same is pegged at $664.5 million.
Adjusted operating expenses are expected between $87 million and $91 million, excluding approximately the $65 million estimated for stock-based compensation expenses and acquisition-related costs and amortization.
The adjusted gross margin is likely to be 40-43%, excluding stock-based compensation expenses.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 7.39% due to these changes.
VGM Scores
Currently, Enphase Energy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Enphase Energy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Enphase Energy (ENPH) Up 8.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Enphase Energy (ENPH - Free Report) . Shares have added about 8.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Enphase Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Enphase Energy Q3 Revenues Beat, Earnings Rise Y/Y
Enphase Energyreported third-quarter 2022 adjusted earnings of $1.25 per share, which improved by a solid 108.3% from the 60 cents reported in the prior-year quarter.
Including one-time adjustments, the company posted GAAP earnings of 80 cents per share, up 433.3% from 15 cents in the year-ago quarter.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 77 cents.
Revenues
Enphase Energy’s third-quarter revenues of $634.7 million beat the Zacks Consensus Estimate of $617 million by 2.9%. The top line soared 80.6% from the year-ago quarter’s $351.5 million, driven by the strong demand for its microinverters and battery systems.
Operational Highlights
Enphase Energy’s total shipments in the reported quarter amounted to approximately 1,709 megawatts (MW) or 4,342,805 microinverters and 133.6 MW hours of Enphase IQ Batteries. The company’s adjusted gross margin expanded 210 basis points year over year to 42.9%.
Adjusted operating expenses escalated by 37.1% year over year to $78.6 million. The adjusted operating income in the quarter soared 125.7% to $193.9 million compared with $85.9 million in the year-ago quarter.
Financial Performance
Enphase Energy had $337.6 million in cash and cash equivalents as of Sep 30, 2022, up from $119.3 million as of Dec 31, 2021.
Cash flow from operating activities amounted to $188 million in the third quarter of 2022 compared with $113.4 million in the third quarter of 2021.
Q4 Guidance
For the fourth quarter of 2022, ENPH expects revenues in the range of $680-$720 million. The Zacks Consensus Estimate for the same is pegged at $664.5 million.
Adjusted operating expenses are expected between $87 million and $91 million, excluding approximately the $65 million estimated for stock-based compensation expenses and acquisition-related costs and amortization.
The adjusted gross margin is likely to be 40-43%, excluding stock-based compensation expenses.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 7.39% due to these changes.
VGM Scores
Currently, Enphase Energy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Enphase Energy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.