Enphase Energy (ENPH) Q2 Earnings Beat, Revenues Drop Y/Y

Enphase Energy, Inc. ENPH reported second-quarter 2020 adjusted earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate of 14 cents by 21.4%. The bottom line however declined 55.3% from 38 cents reported in the prior-year quarter.

Including one-time adjustments, the company posted GAAP loss of 38 cents per share against earnings of 8 cents in the year-ago quarter. The year-over-year downside can be primarily attributed to revenue decline in the second quarter.

Revenues

Enphase Energy’s second-quarter revenues of $125.5 million beat the Zacks Consensus Estimate of $124.4 million by 0.9%. The top line however declined 6.4% from the year-ago quarter’s $134.1 million. Quarterly revenues came within the guided range of $115-$130 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 355 megawatts DC or 1,087,662 microinverters.

Gross profit totaled $48.4 million, up 6.8% from $45.3 million a year ago.

Total operating expenses increased 25.7% year over year to $37.5 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 $10.9 million compared with $17.4 million in the year-ago quarter.

Financial Performance

Enphase Energy had $607.3 million of cash and cash equivalents, as of June 30, 2020, up from $251.4 million at the end of 2019.

Cash flow from operating activities amounted to $64.7 million at the end of second-quarter 2020 compared with $31.8 million in the year-ago period.

Q3 Guidance

For third-quarter 2020, Enphase Energy expects revenues of $160-$175 million. The Zacks Consensus Estimate for the same is pegged at $152.8 million, below the guided range.

Adjusted operating expenses are expected between $28 million and $30 million, excluding approximately $13 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

Canadian Solar CSIQ carries a Zacks Rank #2 and is set to release second-quarter results on Aug 7.

ReneSola SOL carries a Zacks Rank #3 and is expected to post second-quarter 2020 results soon.

JinkoSolar Holdings JKS carries a Zacks Rank #3 and is expected to post second-quarter 2020 results soon.

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