Enphase Energy Q4 Results Beat Estimates; Issues Guidance

Enphase Energy (ENPH) delivered better-than-expected fourth-quarter and full-year results characterized by record revenue. Revenue and earnings topped consensus estimates as the company successfully navigated supply constraints and logistics challenges. ENPH shares rose 2.65% to close at $144.50 on February 8

Enphase is an energy technology company that offers energy management technology solutions for the solar photovoltaic industry.

Financial Results

Total revenue in the quarter was up 17% year-over-year to record highs of $412.7 million, beating consensus estimates of $396.48 million. The increase came on Enphase Energy meeting strong customer demand and shrugging off supply and logistics headwinds. Full-year revenue increased to $1.38 billion from $774 million delivered in 2020.

Diluted earnings per share landed at $0.73, an improvement from $0.51 a share delivered in the same quarter last year and higher than consensus estimates of $0.58. Full-year diluted earnings per share landed at $2.41, up from $1.37 in 2020. Enphase Energy ended the quarter with $1 billion in cash and cash equivalents.

During the quarter, the company started production shipments of IQ8 Microinverters. It also completed the acquisition of ClipperCreek, an entity that offers electric vehicle charging solutions. The company also made progress on its Installer digital platform and completed the acquisition of 365 Pronto, Inc.

For Q1 2022, Enphase Energy is projecting revenue of between $420 million and $440 million with a non-GAAP gross margin of between 38% and 41%.

Stock Rating

Yesterday, Wells Fargo analyst Michael Blum reiterated a Buy rating on the stock and lowered the price target to $255 from $313, implying 76.47% upside potential to current levels. According to the analyst, the price cut reflects broader macro trends amid inflationary pressures and expectations of higher interest rates.

Consensus among analysts is a Strong Buy based on 16 Buys and 3 Holds. The average Enphase Energy price target of $227.42 implies 57.38% upside potential to current levels.

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