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Enphase Energy (ENPH) to Post Q2 Earnings: What's in Store?
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Enphase Energy, Inc. (ENPH - Free Report) is set to report second-quarter 2019 results on Jul 30, after market close.
In the last reported quarter, the company delivered a positive earnings surprise of 60%. However, the bottom line outpaced the Zacks Consensus Estimate in two of the trailing four quarters, the average beat being 31.67%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
During the first quarter of 2019, Enphase Energy witnessed lower revenues in Europe, owing to component shortages. However, management expects the supply to increase in the second quarter. This, in turn, will help the company to meet the increasing demand for its IQ7 microinverters in the region. As a result, Enphase Energy is likely to see solid top-line growth in the soon-to-be-reported quarter.
Meanwhile, Enphase Energy has been working with SunPower (SPWR - Free Report) to ensure smooth product transition from their prior generation microinverters to IQ 7XS and expects a steady growth in the production during the second quarter.
In addition, the N330E Panasonic AC modules integrated with the company’s IQ 7XS microinverters has been available since March 2019. Enphase Energy’s second-quarter results are likely to benefit from the sale of this set.
Backed by such developments, the company is expected to deliver solid top- and bottom-line growth in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues and earnings is pegged at $121.1 million and 13 cents, respectively. These projected figures reflect a noticeable improvement of 59.6% and 550%, respectively, from the year-ago quarter’s actual numbers.
However, Enphase Energy expects component shortages to push up expedite fees and in turn hurt its gross margin in the soon-to-be-reported quarter.
Earnings Whispers
Our proven model does not show that Enphase Energy is likely to beat estimates in second-quarter 2019. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. This is not the case here, as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Enphase Energy has an Earnings ESP of -10.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company’s Zacks Rank #1 increases the predictive power of ESP. However, its negative Earnings ESP makes surprise prediction difficult.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few Solar players that are yet to post their quarterly numbers.
Canadian Solar Inc. (CSIQ - Free Report) is expected to report second-quarter 2019 results on Aug 13.
Sunrun Inc. (RUN - Free Report) is scheduled to report second-quarter 2019 results on Aug 7.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Enphase Energy (ENPH) to Post Q2 Earnings: What's in Store?
Enphase Energy, Inc. (ENPH - Free Report) is set to report second-quarter 2019 results on Jul 30, after market close.
In the last reported quarter, the company delivered a positive earnings surprise of 60%. However, the bottom line outpaced the Zacks Consensus Estimate in two of the trailing four quarters, the average beat being 31.67%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
During the first quarter of 2019, Enphase Energy witnessed lower revenues in Europe, owing to component shortages. However, management expects the supply to increase in the second quarter. This, in turn, will help the company to meet the increasing demand for its IQ7 microinverters in the region. As a result, Enphase Energy is likely to see solid top-line growth in the soon-to-be-reported quarter.
Meanwhile, Enphase Energy has been working with SunPower (SPWR - Free Report) to ensure smooth product transition from their prior generation microinverters to IQ 7XS and expects a steady growth in the production during the second quarter.
In addition, the N330E Panasonic AC modules integrated with the company’s IQ 7XS microinverters has been available since March 2019. Enphase Energy’s second-quarter results are likely to benefit from the sale of this set.
Enphase Energy, Inc. Price and EPS Surprise
Enphase Energy, Inc. price-eps-surprise | Enphase Energy, Inc. Quote
Backed by such developments, the company is expected to deliver solid top- and bottom-line growth in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues and earnings is pegged at $121.1 million and 13 cents, respectively. These projected figures reflect a noticeable improvement of 59.6% and 550%, respectively, from the year-ago quarter’s actual numbers.
However, Enphase Energy expects component shortages to push up expedite fees and in turn hurt its gross margin in the soon-to-be-reported quarter.
Earnings Whispers
Our proven model does not show that Enphase Energy is likely to beat estimates in second-quarter 2019. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. This is not the case here, as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Enphase Energy has an Earnings ESP of -10.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company’s Zacks Rank #1 increases the predictive power of ESP. However, its negative Earnings ESP makes surprise prediction difficult.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few Solar players that are yet to post their quarterly numbers.
Canadian Solar Inc. (CSIQ - Free Report) is expected to report second-quarter 2019 results on Aug 13.
Sunrun Inc. (RUN - Free Report) is scheduled to report second-quarter 2019 results on Aug 7.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>