Why Enphase Is Wednesday’s Big Earnings Winner

By Chris Lange Updated Jan 11, 7:19AM EST · Published Jul 31, 11:00AM EDT

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Why Enphase Is Wednesday’s Big Earnings Winner — © cherrybeans / Getty Images

When Enphase Energy Inc. (NASDAQ: ENPH) released its second-quarter financial results before the markets opened on Wednesday, the firm said that it had $0.18 in earnings per share (EPS) and $134.1 million in revenue. That compared with consensus estimates of $0.13 in EPS and $134.09 million in revenue, as well as the $0.02 per share on $75.9 million in the same period of last year.

During the latest quarter, revenues increased 77% year over year, and the firm shipped roughly 416 megawatts DC, or 1,283,680 microinverters. Enphase continued to see strong demand from its customers across the board.

While demand continued to outstrip available supply, management was able to increase capacity to better support its customers. As a result, Enphase is on track to have a supply of about 2 million microinverters in the fourth quarter of 2019.

Looking ahead to the third quarter, the company expects to see revenue in the range of $170 million to $180 million with a gross margin of 33% to 36%. Consensus estimates are calling for $0.14 in EPS and $128.24 million in revenue for the quarter.

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Badri Kothandaraman, president and CEO, commented:

We exited the second quarter with $206.0 million in cash and generated $14.8 million in cash flows from operations. The second quarter cash balance included net proceeds of approximately $115.5 million on June 5, 2019 associated with the issuance of $132.0 million aggregate principal amount of convertible senior notes due 2024 and the repurchase of $60.0 million aggregate principal amount of convertible notes due 2023 in exchange for shares of Enphase Energy common stock and separate cash payments.

Shares of Enphase traded up about 29% on Wednesday, at $28.02, in a 52-week range of $3.70 to $28.23. The consensus price target is $20.13.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.