Investors were surprised by the report of Enphase Energy Inc.'s (ENPH:NASDAQ) Q1/19 financial results, which included revenue of $100.2 million, an increase of 43% year-over-year. In response, the stock vaulted upward to close 29.28% higher on May 1st.
Prior to the announcement, the company was guiding for revenue of $92.5 million, which amounts to a beat of $7.7 million, or 8.3%.
The company cited continued "strong demand across the board from customers, overcoming the typical first quarter seasonality in the solar industry" as the reason for the large beat on expected revenue.
Can Enphase repeat this performance?
Management estimates revenue will be $115 million to $125 million in Q2/19, an increase of about 20% quarter over quarter. GAAP and non-GAAP gross margin is guided to be within a range of 32% to 35%.
Enphase Energy's Q1 results helped kick off a strong start to 2019 for the solar energy space. With the phaseout of U.S. solar energy incentives set to begin in 2020, this may be the last year customers can collect the full 30% federal tax rebate. As the deadline looms, increased urgency from solar customers may make for a very exciting year in solar energy investing.[NLINSERT]
1) Kevin Jaillet compiled this article for Streetwise Reports LLC and is an employee of Streetwise Reports. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.