Back to top

Image: Bigstock

Why Is Enphase Energy (ENPH) Down 0.3% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for Enphase Energy (ENPH - Free Report) . Shares have lost about 0.3% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Enphase Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Enphase Energy Q4 Earnings Beat, Revenues Rise Y/Y

Enphase Energy reported fourth-quarter 2022 adjusted earnings of $1.51 per share, which improved by a solid 106.8% from 73 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $1.27 by 18.9%.

Including one-time adjustments, the company posted GAAP earnings of $1.06 per share, up 186.5% from 37 cents in the year-ago quarter.

For 2022, the company recorded adjusted earnings of $4.62 per share, up from $2.41 generated during 2021. The full-year earnings also surpassed the Zacks Consensus Estimate of $4.40 per share.

Revenues

Enphase Energy’s fourth-quarter revenues of $724.7 million beat the Zacks Consensus Estimate of $704 million by 2.9%. The top line soared 75.6% from the year-ago quarter’s $412.7 million, driven by strong demand for its Enphase Energy Systems.

For 2022, the company reported revenues worth $2.33 billion, up from $1.38 billion recorded in 2021. The full-year revenues also beat the Zacks Consensus Estimate of $2.31 billion.

Operational Highlights

Enphase Energy’s total shipments in the reported quarter amounted to approximately 1,709 megawatts (MW) or 4,873,702 microinverters and 122.1 MW hours of Enphase IQ Batteries.

The company’s adjusted gross margin expanded 360 basis points year over year to 43.8%.

Adjusted operating expenses escalated by 28.7% year over year to $87.7 million. The adjusted operating income in the quarter soared 134.7% to $229.4 million compared with $85.9 million in the year-ago quarter.

Financial Performance

Enphase Energy had $473.2 million in cash and cash equivalents as of Dec 31, 2022, up from $119.3 million as of Dec 31, 2021.

Cash flow from operating activities amounted to $744.8 million during 2022, compared with $352 million in 2021.

Q1 Guidance

For the first quarter of 2023, ENPH expects revenues in the range of $700-$740 million. The Zacks Consensus Estimate for the same is pegged at $673.9 million, which comes lower than the company’s guidance range.

Adjusted operating expenses are expected between $100 million and $104 million, excluding approximately the $77 million estimated for stock-based compensation expenses and acquisition-related costs and amortization.

The adjusted gross margin is likely to be 41-44%, excluding stock-based compensation expenses.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

At this time, Enphase Energy has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 C. 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. Notably, Enphase Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Enphase Energy, Inc. (ENPH) - free report >>

Published in