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What Awaits Enphase Energy (ENPH) This Earnings Season?

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Enphase Energy, Inc. (ENPH - Free Report) is set to report first-quarter 2020 results on May 5, after market close.

In the last reported quarter, the company delivered a positive earnings surprise of 18.18%. Moreover, the bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average beat being 34.16%.

Let’s see how things have shaped up prior to this announcement.

Factors at Play

On Mar 12, 2020, Enphase declared that more than 18,000 of its energy storage systems have been commissioned worldwide since the product’s inception in 2016. This reflects the solid demand that Enphase’s energy storage systems enjoy globally, which, in turn, is expected to have a positive impact on its revenues in the soon-to-be-reported quarter.

Moreover, in order to enhance its sales from European nations, Enphase has increased installer training significantly and has been tracking installer visit metrics diligently. These initiatives are expected to have boosted its quarterly performance.

Enphase Energy, Inc. Price and EPS Surprise

Enphase Energy, Inc. Price and EPS Surprise

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

During the fourth quarter, Enphase Energy witnessed notable capital expenditure, owing to ramping up of its microinverter manufacturing capacity in Mexico and Encharge battery capacity in China. This reflected increased shipments from the company, which must have taken place in the first quarter as well, thereby boosting its top line.

Backed by these, the company is expected to have delivered solid top and bottom-line growth in the quarter to be reported. The Zacks Consensus Estimate for first-quarter revenues is pegged at $204.3 million, indicating a surge of 104% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for the company’s first-quarter earnings is pegged at 33 cents per share, implying a massive improvement of 312.5% from the year-ago quarter’s 4 cents.

The company had earlier announced plans to start shipments of its Encharge battery in March 2020. We expect further update on this in the announcement.

Earnings Whispers

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. But that is not the case here.

Earnings ESP: Enphase Energy has an Earnings ESP of -7.58%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter .

Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Solar Releases

Some solar companies expected to report first-quarter 2020 earnings soon include First Solar (FSLR - Free Report) , Vivint Solar and Azure Power Global .

The Zacks Consensus Estimate for First Solar earnings is pegged at 24 cents.  

The consensus estimate for Vivint Solar is pegged at a loss of 68 cents.  

The Zacks Consensus Estimate for Azure Power’s first-quarter earnings is pegged at 6 cents.  

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