Shares of solar company Enphase (ENPH) were slightly down in today’s trading as investors await its Q2 earnings results on July 23 after the market closes. Analysts are expecting earnings per share to come in at $0.49 on revenue of $293.7 million. This represents a decline from the $1.47 per share seen in the year-ago period, according to TipRanks’ data.
According to TipRanks’ Bulls Say, Bears Say tool pictured below, it appears that analysts are concerned with competition. In fact, the bearish analysts point out that distributors and installers are shifting away from higher-cost module-level-performance-electronics inverters in favor of lower-cost string options. This is leading to a decline in market share for Enphase, which caused the firm to guide for lower Q2 results.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 12.33% move in either direction.
Is Enphase a Buy or Sell?
Overall, analysts have a Moderate Buy consensus rating on ENPH stock based on 16 Buys, eight Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 41% decline in its share price over the past year, the average ENPH price target of $128.41 per share implies 22.6% upside potential.
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