Enphase Energy (ENPH) Q1 Earnings Beat, Revenues Rise Y/Y

Enphase Energy, Inc. ENPH reported first-quarter 2020 adjusted earnings of 38 cents per share, which surpassed the Zacks Consensus Estimate of 32 cents by 18.8%. The bottom line also surged a massive 375% from 8 cents reported in the prior-year quarter.

Including one-time adjustments, the company posted GAAP earnings of 50 cents per share compared with 2 cents in the year-ago quarter.

The year-over-year uptick can be attributed to solid revenues and operating income growth in the first quarter.

Revenues

Enphase Energy’s first-quarter revenues of $205.5 million beat the Zacks Consensus Estimate of $204 million by 0.7%. The top line soared 105.2% from the year-ago quarter’s $100.2 million, driven by solid shipments. Quarterly revenues came within the guided range of $200-$210 million.

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

Operational Highlights

Enphase Energy’s total shipments during the reported quarter amounted to approximately 643 megawatts DC or 2,012,476microinverters.

Gross profit totaled $80.7 million, soaring 142% from $33.3 million a year ago.

Total operating expenses increased 37.2% year over year to $36 million. This can be attributed to higher research and development, sales and marketing, as well as general and administrative expenses.

Operating income during the quarter totaled $44.7 million compared with $7.1 million in the year-ago quarter.

Financial Performance

Enphase Energy had $549.1 million of cash and cash equivalents, as of Mar 31, 2020, up from $251.4 million at the end of 2019.

Cash flow from operating activities amounted to $39.2 million in first-quarter 2020 compared with $17.06 million in the year-ago period.

Long-term debt was $295.2 million at the end of the first quarter compared with $102.7 million as of Dec 31, 2019.

Q2 Guidance

For second-quarter 2020, Enphase Energy expects revenues of $115-$130 million. The Zacks Consensus Estimate for the same is pegged at $161.7 million, higher than the guided range.

Adjusted operating expenses are expected between $25.5 million and $27.5 million, excluding approximately $7.5 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 #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Solar Releases

SunPower Corp. SPWR has a Zacks Rank #3 and is set to report first-quarter 2020 results on May 7.

First Solar FSLR has a Zacks Rank #3 and is set to release first-quarter 2020 results on May 7.

Vivint Solar VSLR carries a Zacks Rank #3 and is expected to post first-quarter 2020 results on May 7.

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