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Enphase Energy's Q3 Earnings Miss Estimates, Revenues Down Y/Y

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Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2024 adjusted earnings of 65 cents per share, which declined 36.3% from $1.02 in the prior-year quarter. The bottom line also lagged the Zacks Consensus Estimate of 78 cents by 16.7%.

Including one-time adjustments, the company posted GAAP earnings of 33 cents per share, which significantly deteriorated from the year-ago quarter’s figure of 80 cents.

The year-over-year deterioration can be attributed to a double-digit decline in third-quarter revenues as well as income from operations from the year-ago quarter.

Revenues

Enphase Energy’s revenues of $380.9 million missed the Zacks Consensus Estimate of $391 million by 2.6%. The top line also declined 30.9% from the prior-year quarter’s figure of $551.1 million.

Enphase Energy, Inc. Price, Consensus and EPS Surprise

Enphase Energy, Inc. Price, Consensus and EPS Surprise

Enphase Energy, Inc. price-consensus-eps-surprise-chart | Enphase Energy, Inc. Quote

Operational Update

The company’s shipments amounted to approximately 1,731,768 microinverters or 730.0 megawatts direct current and 172.9 MW hours of Enphase IQ Batteries.

Enphase Energy’s adjusted gross margin declined 30 basis points year over year to 48.1%.

Adjusted operating expenses dropped 17.6% year over year to $81.6 million.

The adjusted operating income totaled $101.4 million, down 39.5% from $167.6 million reported in the year-ago quarter.

Financial Details

Enphase Energy generated cash and cash equivalents worth $256.3 million as of Sept. 30, 2024 compared with $288.7 million as of Dec. 31, 2023.

Cash flow from operating activities for the nine months ended on Sept. 30 amounted to $346.4 million compared with $661.3 million in the prior-year period.

Q4 Guidance

For the fourth quarter, ENPH expects revenues to be in the range of $360-$400 million. The Zacks Consensus Estimate for revenues is pegged at $440.6 million, which lies above the company’s guided range.

Enphase Energy expects shipments to be in the range of 140-160 MW hours of IQ batteries.

Adjusted operating expenses are expected between $81 million and $85 million. This excludes approximately $54 million estimated for stock-based compensation expenses, acquisition-related amortization and restructuring.

The adjusted gross margin is expected to be in the range of 49-52%, excluding stock-based compensation expenses and acquisition-related amortization.

Zacks Rank

Enphase Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Other companies from the same industry that will soon report their third-quarter results are discussed below.

First Solar, Inc. (FSLR - Free Report) is scheduled to report third-quarter results on Oct. 29, after market close. The Zacks Consensus Estimate for First Solar’s earnings is pegged at $3.16 per share, which indicates year-over-year growth of 26.4%.

The consensus estimate for sales is pegged at $1.08 billion, which indicates year-over-year growth of 34.6%.

Sunnova Energy International (NOVA - Free Report) is set to report third-quarter 2024 results on Oct. 30, after market close. The Zacks Consensus Estimate for Sunnova Energy’s earnings is pegged at a loss of 53 cents per share.

The consensus estimate for sales is pegged at $241.2 million, which indicates year-over-year growth of 21.6%.

Nextracker Inc. (NXT - Free Report) is also slated to report third-quarter results on Oct. 30, after market close. The Zacks Consensus Estimate for Nextracker’s earnings is pegged at 66 cents per share, which indicates year-over-year growth of 1.5%.

The consensus estimate for sales is pegged at $606.1 million, which indicates year-over-year growth of 5.7%.

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