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Enphase Energy (ENPH) to Post Q4 Earnings: What's in Store?
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Enphase Energy, Inc. (ENPH - Free Report) is scheduled to report fourth-quarter and full-year 2023 results on Feb 6, after the closing bell.
In the last reported quarter, the company’s earnings came in line with the Zacks Consensus Estimate. Enphase Energy has a trailing four-quarter average earnings surprise of 11.97%.
Factors to Note
Thanks to the growing product demand in the solar market in recent times, Enphase Energy can be expected to have shipped a solid number of its microinverters and batteries from its own manufacturing facilities, as well as its contract manufacturers, in the fourth quarter. The company had earlier projected to deliver approximately 1 million microinverters to customers from its U.S. manufacturing facilities in the soon-to-be-reported quarter.
Such solid product sales must have boosted its fourth-quarter revenues.
However, macroeconomic factors like the transition from net energy metering (NEM) 2.0 to NEM 3.0 in California have been hampering the sale of its products in the United States. On the other hand, in Europe, which happens to be another important market for ENPH, a slowdown in recent purchases after the initial surge of sales related to the onset of the Russian-Ukraine armed conflict and lower utility rates has been impacting the company’s sales. These factors are most likely to have hurt ENPH’s top-line performance in the fourth quarter as well.
The Zacks Consensus Estimate for ENPH’s fourth-quarter revenues is pegged at $326.2 million, indicating a decline of 55% from the year-ago quarter’s level.
A weak top line may have dampened its overall bottom line in the fourth quarter of 2023. Also, as ENPH continues to invest in product innovation, customer service and international growth, it might have incurred higher operating expenses. This might have dented the company’s overall margin performance, thereby unfavorably impacting its earnings in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 54 cents per share, indicating a decline of 64.2% from the prior-year reported figure.
What the Zacks Model Unveils
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, which is not the case here.
Earnings ESP: Enphase’s Earnings ESP is -14.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three companies from the same sector that you may want to consider as these have the right combination of elements to post an earnings beat this reporting cycle.
Cheniere Energy (LNG - Free Report) currently has an Earnings ESP of +5.55% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $4.50 billion.
Estimates for LNG’s fourth-quarter earnings are pegged at $2.70 per share. The stock has a four-quarter average earnings surprise of 91.99%.
Plains All American Pipeline (PAA - Free Report) currently has an Earnings ESP of +6.12% and a Zacks Rank #3. The Zacks Consensus Estimate for PAA’s fourth-quarter sales is pegged at $18.41 billion, indicating an improvement of 42.1% from the year-ago quarter’s reported actuals.
Estimates for the company’s fourth-quarter earnings are pegged at 37 cents per share, indicating a 12.1% improvement from the prior-year quarter’s reported figure. PAA has a four-quarter earnings surprise of 18.27%, on average.
Energy Transfer (ET - Free Report) currently has an Earnings ESP of +0.69% and a Zacks Rank #1. The Zacks Consensus Estimate for Energy Transfer’s fourth-quarter sales is pegged at $23.59 billion, implying an improvement of 15% from the prior-year reported figure.
ET delivered an earnings surprise of 6.90% in the last reported quarter. Fourth-quarter earnings estimates are pegged at 29 cents per share.
Image: Bigstock
Enphase Energy (ENPH) to Post Q4 Earnings: What's in Store?
Enphase Energy, Inc. (ENPH - Free Report) is scheduled to report fourth-quarter and full-year 2023 results on Feb 6, after the closing bell.
In the last reported quarter, the company’s earnings came in line with the Zacks Consensus Estimate. Enphase Energy has a trailing four-quarter average earnings surprise of 11.97%.
Factors to Note
Thanks to the growing product demand in the solar market in recent times, Enphase Energy can be expected to have shipped a solid number of its microinverters and batteries from its own manufacturing facilities, as well as its contract manufacturers, in the fourth quarter. The company had earlier projected to deliver approximately 1 million microinverters to customers from its U.S. manufacturing facilities in the soon-to-be-reported quarter.
Such solid product sales must have boosted its fourth-quarter revenues.
Enphase Energy, Inc. Price and EPS Surprise
Enphase Energy, Inc. price-eps-surprise | Enphase Energy, Inc. Quote
However, macroeconomic factors like the transition from net energy metering (NEM) 2.0 to NEM 3.0 in California have been hampering the sale of its products in the United States. On the other hand, in Europe, which happens to be another important market for ENPH, a slowdown in recent purchases after the initial surge of sales related to the onset of the Russian-Ukraine armed conflict and lower utility rates has been impacting the company’s sales. These factors are most likely to have hurt ENPH’s top-line performance in the fourth quarter as well.
The Zacks Consensus Estimate for ENPH’s fourth-quarter revenues is pegged at $326.2 million, indicating a decline of 55% from the year-ago quarter’s level.
A weak top line may have dampened its overall bottom line in the fourth quarter of 2023. Also, as ENPH continues to invest in product innovation, customer service and international growth, it might have incurred higher operating expenses. This might have dented the company’s overall margin performance, thereby unfavorably impacting its earnings in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 54 cents per share, indicating a decline of 64.2% from the prior-year reported figure.
What the Zacks Model Unveils
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, which is not the case here.
Earnings ESP: Enphase’s Earnings ESP is -14.17%. 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.
Stocks to Consider
Here are three companies from the same sector that you may want to consider as these have the right combination of elements to post an earnings beat this reporting cycle.
Cheniere Energy (LNG - Free Report) currently has an Earnings ESP of +5.55% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $4.50 billion.
Estimates for LNG’s fourth-quarter earnings are pegged at $2.70 per share. The stock has a four-quarter average earnings surprise of 91.99%.
Plains All American Pipeline (PAA - Free Report) currently has an Earnings ESP of +6.12% and a Zacks Rank #3. The Zacks Consensus Estimate for PAA’s fourth-quarter sales is pegged at $18.41 billion, indicating an improvement of 42.1% from the year-ago quarter’s reported actuals.
Estimates for the company’s fourth-quarter earnings are pegged at 37 cents per share, indicating a 12.1% improvement from the prior-year quarter’s reported figure. PAA has a four-quarter earnings surprise of 18.27%, on average.
Energy Transfer (ET - Free Report) currently has an Earnings ESP of +0.69% and a Zacks Rank #1. The Zacks Consensus Estimate for Energy Transfer’s fourth-quarter sales is pegged at $23.59 billion, implying an improvement of 15% from the prior-year reported figure.
ET delivered an earnings surprise of 6.90% in the last reported quarter. Fourth-quarter earnings estimates are pegged at 29 cents per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.