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

Enphase Energy, Inc. (NASDAQ:ENPH) reported second-quarter 2019 adjusted earnings of 18 cents per share, which surpassed the Zacks Consensus Estimate of 13 cents by 38.5%. The bottom line also improved from a penny reported in the prior-year quarter.

Barring one-time adjustments, the company posted GAAP earnings of 8 cents per share against a loss of 4 cents in the year-ago quarter.

Revenues

Enphase Energy’s revenues of $134.1 million in the second quarter surpassed the Zacks Consensus Estimate of $121 million by 10.8%. The top line also surged 76.7% from the year-ago quarter’s $75.9 million on solid shipments.

Operational Highlights

Enphase Energy’s total shipments during the reported quarter amounted to approximately 416 megawatts DC or 1,283,680 microinverters.

Gross profit totaled $45.3 million, soaring 99.6% from $22.7 million a year ago.

Total operating expenses flared up 19.8% year over year to $27.9 million. The uptick can be attributed to higher research and development, sales and marketing, and general and administrative expenses along with restructuring charges.

Operating income during the quarter totaled $23.2 million compared with $4.1 million in the year-ago quarter.

Q2 Business Highlights

Toward the end of the quarter, Enphase Energy announced the first shipment of seventh-generation Enphase IQ™ microinverters, produced in Mexico as part of its expanded manufacturing agreement with Flex. As previously announced, the company plans to sell products produced in Mexico to the U.S. market to mitigate tariffs, increase global capacity and improve customer delivery times.

Financial Performance

Enphase Energy had $206 million of cash and cash equivalents as of Jun 30, 2019, up from $106 million at the end of 2018.

Cash flow from operating activities amounted to $31.8 million at the end of first-half 2019 compared with $7.4 million in the year-ago period.

Long-term liabilities were $220.6 million at the end of the second quarter compared with $185 million as of Dec 31, 2018.

Enphase Energy, Inc. Price, Consensus and EPS Surprise

Q3 Guidance

For third-quarter 2019, Enphase Energy expects to generate revenues of $170-$180 million. The Zacks Consensus Estimate for the same is pegged at $128.9 million, much lower than the company’s guided range.

Non-GAAP operating expenses are expected between $23.5 million and $25.5 million, excluding approximately $5.0 million estimated for stock-based compensation expenses, acquisition-related expenses and amortization.

GAAP and non-GAAP gross margin are likely to be 33-36%.

Zacks Rank

Enphase Energy currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Upcoming Solar Releases

SolarEdge Technologies. (NASDAQ:SEDG) is slated to release second-quarter 2019 results on Aug 6.

Sunrun Inc. (NASDAQ:RUN) is scheduled to release second-quarter 2019 results on Aug 7.

First Solar Inc. (NASDAQ:FSLR) is set to release second-quarter 2019 results on Aug 1.

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