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Fremont, California-based Enphase Energy, Inc. (ENPH) designs, develops, manufactures, and sells solar energy equipment for the solar photovoltaic industry internationally. Valued at $14.52 billion by market cap, the company offers home and commercial solar and storage solutions. The leading microinverter-based solar and battery systems supplier is expected to announce its fiscal second-quarter earnings for 2024 on Tuesday, Jul. 23.
Ahead of the event, analysts expect ENPH to report a profit of $0.15 per share on a diluted basis, down 87.1% from $1.16 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. In the previous quarter, ENPH shipped 1,382,195 microinverters, or approximately 603.6 megawatts DC, and 75.5 megawatt hours of IQ Batteries.
For the full year, analysts expect ENPH to report EPS of $1.43, down 56.7% from $3.30 in fiscal 2023.
ENPH stock has underperformed the S&P 500’s ($SPX) 18.1% gains on a YTD basis, with shares down 14.3% during this period. Similarly, it underperformed the S&P 500 Technology Sector SPDR’s (XLK) 22.9% gains over the same time frame.
On Jun. 3, ENPH shares gained more than 1%, as it announced the start of shipping of its most powerful home battery to date, the IQ Battery 5P, in Canada with a 5 kWh capacity. It can be paired with the new IQ8 Microinverters to provide homeowners reliable electricity to use whenever they need it.
ENPH’s overall performance can be attributed to its poor Q1 results and soft current-quarter sales outlook. Its adjusted EPS for Q1 of $0.35 fell short of Wall Street expectations of $0.42. The company posted a revenue of $263.30 million, missing the Wall Street forecast of $280.10 million. For Q2, ENPH expects revenue to be between $290 million and $330 million. ENPH shares closed up more than 2% on the day the results were released but have been on a downtrend since then.
Analysts’ consensus opinion on ENPH stock is bullish, with a “Moderate Buy” rating overall. Out of 33 analysts covering the stock, 17 advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, 11 give a “Hold” rating, one suggests a “Moderate Sell” rating, and two recommend a “Strong Sell.” The average analyst price target for ENPH is $126.49, indicating a potential upside of 18.5% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
