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Enphase Energy (ENPH) Q4 Earnings Beat, Revenues Up Y/Y

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Enphase Energy, Inc. ENPH reported fourth-quarter 2019 adjusted earnings of 39 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 18.2%. The bottom line also surged a massive 875% from 4 cents reported in the prior-year quarter.

The year-over-year uptick can be attributed to solid revenues and operating income growth in the fourth quarter.

Barring one-time adjustments, the company posted GAAP earnings of 88 cents per share compared with just a cent in the year-ago quarter.

For 2019, the company reported adjusted earnings of 95 cents per share, beating the Zacks Consensus Estimate of 89 cents. The company reported adjusted earnings of 10 cents per share in the prior year.

Revenues

Enphase Energy’s revenues of $210 million in the fourth quarter surpassed the Zacks Consensus Estimate of $204.8 million by 2.5%. The top line soared 119.8% from the year-ago quarter’s $92.3 million, driven by solid shipments.

For 2019, the company recorded adjusted revenues of $624.3 million, exceeding the Zacks Consensus Estimate of $619.1 million by 0.8%. Moreover, the top line jumped 97.5% from last year’s $316.2 million.

Operational Highlights

Enphase Energy’s total shipments during the reported quarter amounted to approximately 677 megawatts DC or 2,112,725 microinverters.

Gross profit totaled $77.9 million, soaring 176.5% from $28.2 million a year ago.

Total operating expenses increased 44.4% year over year to $33.4 million. This can be attributed to higher research and development, sales and marketing, and general and administrative expenses.

Operating income during the quarter totaled $44.4 million compared with $5 million in the year-ago quarter.

Enphase Energy, Inc. Price, Consensus and EPS Surprise

Financial Performance

Enphase Energy had $251.4 million of cash and cash equivalents, as of Dec 31, 2019, up from $106.2 million at the end of 2018.

Cash flow from operating activities amounted to $102.3 million in fourth-quarter 2019 compared with $1.88 million in the year-ago period.

Long-term liabilities were $241.7 million at the end of the fourth quarter compared with $185 million as of Dec 31, 2018.

Q1 2020 Guidance

For first-quarter 2020, Enphase Energy expects to generate revenues of $200-$210 million, including $44.5 million of revenues for ITC safe harbor shipments. The Zacks Consensus Estimate for the same is pegged at $171.7 million, lower than the company’s guided range.

Non-GAAP operating expenses are expected between $28 million and $30 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 36-39%.

Zacks Rank

Enphase Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Solar Releases

First Solar (FSLR - Free Report) is set to release fourth-quarter results on Feb 20.

Sunrun RUN is set to release fourth-quarter results on Feb 27.

Vivint Solar VSLR is expected to post fourth-quarter 2019 results soon.

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