Enphase Energy (ENPH) To Post Q4 Earnings: What's In Store?
Zacks Investment Research | Feb 12, 2020 10:20PM ET
Enphase Energy, Inc. (NASDAQ:ENPH) is set to report fourth-quarter and 2019 results on Feb 18, after market close.
In the last reported quarter, the company delivered a positive earnings surprise of 20%. Moreover, the bottom line outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. The four-quarter beat is 21.28%, on average.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
As Enphase Energy derives majority of its revenues from microinverters, it started ramping up its manufacturing capacity in Mexico to meet the growing demand for solar products. In line with this, during its third-quarter earnings call, the company announced that it has capacity in place for manufacturing 2.5 million microinverters in the fourth quarter.
Considering this, the company is expected to have shipped 2.1-2.2 million microinverters to customers in the to-be-reported quarter. This reflects a solid rise in shipment when compared with the year-ago quarter’s shipment of 0.8 million. Such enhanced shipments are expected to have boosted Enphase’s quarterly revenues significantly in the fourth quarter.
Additionally, during the fourth quarter, Enphase Energy announced the availability of pre-orders for battery storage systems based on its Ensemble energy management technology. This might have also contributed to the quarterly results.
Backed by such developments, the company is expected to deliver solid top and bottom-line growth in the quarter to be reported. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $204.8 million, indicating a surge of 121.9% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings is pegged at 33 cents per share, implying a massive improvement of 725% from the year-ago quarter’s 4 cents.
Moreover, we expect the company’s balance sheet to reflect an impressive cash balance figure backed by solid cash flow, which it received as prepayments for the ITC safe harbor product shipment, in the fourth quarter.
Enphase Energy, Inc. Price and EPS Surprise
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