Enphase Energy’s Q3 Revenue & Earnings Outperform; Shares Pop 13%

Enphase Energy, Inc. (ENPH) has reported better-than-expected third-quarter 2021 results on the back of strong top-line growth. Following the news, shares of the solar energy company rose 12.9% in the extended trading session on Tuesday.

The company recorded adjusted earnings of $0.60 per share, beating the consensus estimate of $0.48. It had reported earnings of $0.30 per share in the same quarter last year.

Additionally, revenues during the quarter almost more than doubled on a year-over-year basis to $351.52 million, topping analysts’ expectations of $343.09 million.

Adjusted gross margin stood at 40.8%, down 20 basis points year-over-year. Markedly, during the quarter, the company shipped around 2.6 million microinverters, or 913 megawatts DC, and 65 megawatt-hours of Enphase Storage systems.

Other Developments

Product innovation remains the priority for the company’s growth strategy. Recently, an all-new, all-in-one Energy System with IQ8 solar microinverters for customers in North America was announced by Enphase Energy.

Additionally, home energy systems were also disclosed, which will be integrated with most leading models of home standby AC generators. This will provide enhanced performance and a glitch-free transition for homeowners during power outages, the company said.

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Guidance

During the earnings call, the CEO of Enphase Energy, Badri Kothandaraman, said, “We are making significant progress on the digital platform for installers in order to cut soft costs. We will remain laser-focused on both the products and the digital platform to deliver a superior customer experience for both our installers and homeowners.” (See Enphase Energy stock charts on TipRanks)

For the fourth quarter of 2021, the company forecasts revenue to be in the range of $390 million to $410 million as against the consensus estimate of $370 million. The expectations include shipments of 90 to 100 megawatt-hours of Enphase Storage systems. Additionally, adjusted gross margin is likely to be between 38% and 41%.

Analysts Recommendation

Following the results, BMO Capital analyst Ameet Thakkar maintained a Buy rating on the stock and increased the price target to $220 (26.83% upside potential) from $200.

Consensus among analysts is a Strong Buy based on 8 Buys versus 1 Hold. The average Enphase Energy price target of $213.13 implies that shares are fully valued at current levels. Shares have surged 75.9% over the past year.

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 95% Bullish on ENPH, compared to a sector average of 69%.