Enphase Energy (ENPH) Q3 Earnings Beat, Revenues Down Y/Y

Zacks Equity Research
·3-min read

Enphase Energy, Inc. ENPH reported third-quarter 2020 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents by 25%. The bottom line was in line with the year-ago quarter’s adjusted earnings.

Barring one-time adjustments, the company posted GAAP earnings of 28 cents per share compared with earnings of 23 cents in the year-ago quarter.

Revenues

Enphase Energy’s revenues of $178.5 million in the third quarter surpassed the Zacks Consensus Estimate of $170 million by 5.1%. The top line, however, declined 0.9% from the year-ago quarter’s $180.1 million.

Operational Highlights

Enphase Energy’s total shipments during the reported quarter amounted to approximately 478 megawatts DC or 1,442,743 microinverters.

Gross profit totaled $95 million, soaring 46.8% from $64.7 million a year ago.

Total operating expenses grew 39.4% year over year to $43.2 million. The uptick can be attributed to higher research & development, sales & marketing and general & administrative expenses.

Operating income during the quarter totaled $51.8 million compared with $33.7 million in the year-ago quarter.

Enphase Energy, Inc. Price, Consensus and EPS Surprise

Enphase Energy, Inc. Price, Consensus and EPS Surprise
Enphase Energy, Inc. Price, Consensus and EPS Surprise

Enphase Energy, Inc. price-consensus-eps-surprise-chart | Enphase Energy, Inc. Quote

Financial Performance

Enphase Energy had $661.8 million of cash and cash equivalents as of Sep 30, 2020, up from $251.4 million at the end of 2019.

Cash flow from operating activities amounted to $67.5 million at the end of third-quarter 2020 compared with $5 million in the year-ago period.

Long-term liabilities were $676.1 million at the end of the third quarter compared with $441 million as of Dec 31, 2019.

Q4 Guidance

For fourth-quarter 2020, Enphase Energy expects revenues of $245-$260 million.

Adjusted operating expenses are expected between $35 million and $38 million, excluding approximately $16 million estimated for stock-based compensation expenses, acquisition-related expenses and amortization.

Adjusted gross margin is likely to be in the range of 37-40%.

Zacks Rank

Enphase Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

First Solar FSLR reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.

SunPower Corp. SPWR incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents.

An Upcoming Solar Release

SolarEdge Technologies SEDG carries a Zacks Rank #3 and is set to release third-quarter 2020 results on Nov 2.

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