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Enphase Energy (ENPH) Q3 Earnings Beat, Revenues Up Y/Y

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Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2019 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 25 cents by 20%. The bottom line also improved a massive 650% from 4 cents reported in the prior-year quarter.

The year-over-year uptick can be attributed to solid revenues as well as operating income growth witnessed in the third quarter.

Barring one-time adjustments, the company posted GAAP earnings of 23 cents per share against a loss of 3 cents in the year-ago quarter.

Revenues

Enphase Energy’s revenues of $180.1 million in the third quarter surpassed the Zacks Consensus Estimate of $176 million by 2%. The top line surged 130.8% from the year-ago quarter’s $78 million driven by solid shipments.

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 Highlights

Enphase Energy’s total shipments during the reported quarter amounted to approximately 584 megawatts DC or 1,795,653 microinverters.

Gross profit totaled $64.7 million, soaring 156.1% from $25.3 million a year ago.

Total operating expenses increased 20.9% year over year to $31 million. The uptick can be attributed to higher research and development, sales and marketing along with general and administrative expenses.

Operating income during the quarter totaled $33.7 million against loss of $0.4 million in the year-ago quarter.

Financial Performance

Enphase Energy had $203 million of cash and cash equivalents as of Sep 30, 2019, up from $106 million at the end of 2018.

Cash flow from operating activities amounted to $5 million at the end of third quarter 2019 compared with $6.8 million in the year-ago period.

Long-term liabilities were $224.6 million at the end of the third quarter compared with $185 million as of Dec 31, 2018.

Q4 Guidance

For fourth-quarter 2019, Enphase Energy expects to generate revenues of $200-$210 million. The Zacks Consensus Estimate for the same is pegged at $192.6 million, lower than the company’s guided range. 

Non-GAAP operating expenses are expected between $24.5 million and $26.5 million, excluding approximately $7 million estimated for stock-based compensation expenses, acquisition-related expenses and amortization.

GAAP and non-GAAP gross margins are likely to be in the range of 34-37%.

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 Solar Releases

SolarEdge Technologies (SEDG - Free Report) , a Zacks Rank #3 stock, is slated to release third-quarter 2019 results on Nov 6.

Sunworks, Inc. , carrying a Zacks Rank #3, is due to release third-quarter 2019 results on Oct 31.

JinkoSolar Holding Company Limited (JKS - Free Report) , a Zacks Rank #2 stock, is scheduled to release third-quarter 2019 results on Nov 19.

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