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Enphase Energy, Inc. (ENPH), headquartered in Fremont, California, is a global leader in energy technology and renewable solutions. With a market cap of $9.4 billion, Enphase drives innovation by developing cutting-edge microinverter systems and energy management technologies that empower homeowners and businesses to harness and optimize solar power. The company is set to release its Q4 earnings on Tuesday, Feb. 4.
Ahead of the event, analysts expect Enphase to report a profit of $0.43 per share, up 48.3% from $0.29 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while exceeding on one other occasion. The company reported an adjusted EPS of $0.38 in the most recent quarter, missing the consensus estimates by 13.6%.
In fiscal 2024, analysts expect Enphase to report a profit of $0.94, down 71.5% from $3.30 in fiscal 2023. However, in fiscal 2025, EPS is expected to grow by 152.1% year-over-year to $2.37.
Enphase Energy’s shares have fallen 40% over the past 52 weeks, significantly underperforming the broader S&P 500 Index's ($SPX) 24.4% gains and the Technology Select Sector SPDR Fund's (XLK) 23.9% returns over the same time frame.
Enphase Energy’s shares dropped 14.9% the day after its disappointing Q3 earnings release on Oct. 22. Revenue amounted to $380.9 million, down 30.9% year over year and 3.3% below analyst’s expectations.
The company provided lackluster guidance for fiscal Q4, forecasting midpoint revenue of $380 million, which is 12.7% below consensus projections. Non-GAAP gross margin is anticipated to be between 49% and 52%. Net IRA benefit is expected to be between $38 million and $41 million based on estimated shipments of 1,300,000 units of U.S.-manufactured microinverters.
Analysts’ consensus opinion on ENPH stock is cautiously bullish, with a “Moderate Buy” rating overall. Out of 36 analysts covering the stock, 15 advise a “Strong Buy” rating, 17 give a “Hold” rating, two suggest a “Moderate Sell,” and two recommend a “Strong Sell.”
The average analyst price target for ENPH is $94.99, indicating a potential upside of 36.4% from the current levels.
