Enphase (ENPH) stock was off to the races on Wednesday after investors liked the company’s latest quarterly report. And that’s not surprising, considering the results the solar microinverter and monitoring system specialist delivered.
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Revenue came in at a record $412.72 million, a 55.8% increase on the same period last year, in turn beating the consensus estimate by $13.1 million. There was an impressive display on the bottom-line too, as non-GAAP EPS hit $0.73, $0.14 above the Street’s call.
Boosted by European revenue more than doubling – the company introduced batteries in Germany and Belgium in 2021, with more European countries expected to come on board this year – and Asia and Pacific and Latin America revenue each growing by roughly 80%, 2021’s full-year revenue hit $1.38 billion vs. the $774.4 million delivered in 2020.
International expansion should continue apace in 2022, with the company expected to offer batteries in Australia in 2H22. Progress is also being made in Brazil, with the ramping of IQ 7+ microinverter installers in Q4, while the solar storage business keeps generating healthy business in the Caribbean, especially in Puerto Rico.
To top it all off, during 2021, the company also generated a record $352 million in cash flow from operations and provided a rosy outlook; for Q1, revenue is expected to come in between $420 million to $440 million. Consensus had $407.61 million.
Reflecting investors’ sentiment, Evercore analyst James West is impressed with the company’s progress.
“Enphase continues to accelerate its transition from solar company to energy transformation company with the belief that full home electrification is inevitable,” the analyst said. “It seems every week the company is announcing an expansion into a new battery storage market as demand for storage remains strong. The transition will be driven by leveraging its core competencies in semiconductor-based architecture, software, and distributed architecture with hierarchy control to continue to build on its Ensemble energy system to create a truly comprehensive digital home energy system platform.”
Accordingly, West reiterated an Outperform (i.e. Buy) rating on ENPH shares along with a $265 price target. If correct, investors could be lining their pockets with a 64% gain. (To watch West’s track record, click here)
Most analysts agree with West’s stance; barring 4 Holds, all 18 other recent reviews are positive, allowing for a Strong Buy consensus rating. The average price target stands at $225.52, suggesting shares have room for ~40% growth in the year ahead. (See ENPH stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
