Solar company Enphase Energy (NASDAQ:ENPH) impressed investors with market-beating third-quarter results. The company’s Q3 earnings grew 108% year-over-year to $1.25, crushing analysts’ consensus estimate of $1.09. Strong top-line growth and robust margins fueled higher Q3 earnings.
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Enphase Energy stock was up 3.5% in Tuesday’s extended trading session. Shares of the leading supplier of microinverter-based solar and battery systems have rallied 45.2% year-to-date amid favorable demand trends and the passing of the Inflation Reduction Act.
Enphase’s Q2 revenue surged 80.6% year-over-year to $634.7 million, topping the Street’s estimate of $615.9 million. The company gained from strong demand for its products, especially in North America and Europe. Notably, revenue from Europe surged as countries in the region are looking for alternative energy sources to combat rising energy prices and lower their reliance on fossil fuels.
Looking ahead, Enphase expects Q4 revenue in the range of $680 million to $720 million, compared to the Street’s expectation of $663.5 million.
Is Enphase a Buy or Sell?
Wall Street has a Strong Buy consensus rating for Enphase Energy Stock based on 12 Buys and four Holds. The average ENPH stock price target of $289.64 implies 9.1% upside potential from current levels.
