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Enphase Energy Powers 40% Higher on Q4 Earnings and Bright Outlook

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Shares of Enphase Energy traded 40% higher, setting a new 52-week intraday high price, after reporting Q4/19 and FY/19 financial results.

After U.S. markets closed for trading yesterday afternoon, global solar energy technology firm Enphase Energy Inc. (ENPH:NASDAQ), which claims to be the world's leading supplier of solar microinverters, announced financial results for the fourth quarter of 2019.

The company's President and CEO Badri Kothandaraman reported on some of the operational and financial highlights indicating that in Q4/19 the firm increased revenue by 128% to $210.0 million, compared to $92.3 million in Q4/18. The firm noted that in Q4/19 GAAP gross margin was 37.1% and non-GAAP gross margin was 37.3%.

Enphase reported "GAAP net income of $116.7 million, including an income tax benefit of $72.2 million; non-GAAP net income of $52.0 million, and GAAP diluted earnings per share (EPS) of $0.88, including an income tax benefit of $0.54; and non-GAAP diluted EPS of $0.39."

The company added that it shipped approximately 677 megawatts DC, or 2,112,725 microinverters in Q4/19. The firm stated that it achieved volume shipments of its highest power microinverter, the IQ 7A™, as customers continued to seek module-level power electronics optimal for high-efficiency solar modules.

For FY/19 revenue was $624.3 million, compared to $316.2 million in FY/18 and GAAP net income was $161.1 million, or diluted EPS of $1.23. The company advised that FY/19 was the first full year of GAAP profitability in its history.

The company touched on a few of the business highlights in the quarter including that in November 2019 it entered into a strategic supply agreement with Sunrun Inc. to provide its seventh-generation Enphase IQ™ microinverters to Sunrun for use in its residential solar business.

In January 2020, Enphase announced that Petersen-Dean Inc. selected Enphase as its premier supplier of solar inverters and battery storage systems, and earlier this month the firm announced it joined forces with CREATON GmbH to deliver photovoltaic (PV) in-roof systems to residential solar customers throughout Germany.

The company provided some forward guidance and advised that it expects Q1/20 revenue to be within a range of $200-210 million, including $44.5 million of revenue for ITC safe harbor shipments and expects both GAAP and non-GAAP gross margin to be within a range of 36-39%.

Enphase Energy is a global energy technology company headquartered in Fremont, Calif., that "delivers smart, easy-to-use solutions that connects solar generation, storage and management on one intelligent platform." The company states its microinverter technology, which produces a fully integrated solar plus storage solution, has "revolutionized the solar industry." To date, the firm advised that it has shipped more than 25 million microinverters and deployed over 1,000,000 Enphase systems in 130 countries.

Enphase Energy started off the day with a market capitalization of around $1.9 billion with approximately 122.4 million shares outstanding and a short interest of about 18.1%. ENPH shares opened 18% higher today at $47.51 (+$7.34, +18.27%) over yesterday's $40.17 closing price and reached a new 52-week high price this morning of $57.57. The stock has traded today between $47.30 and 57.57 per share and is currently trading at $55.53 (+$15.36, +38.24%).


1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. 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.
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