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Enphase Energy (ENPH) Q3 Earnings Beat, Revenues Up Y/Y
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Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2019 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 25 cents by 20%. The bottom line also improved a massive 650% from 4 cents reported in the prior-year quarter.
The year-over-year uptick can be attributed to solid revenues as well as operating income growth witnessed in the third quarter.
Barring one-time adjustments, the company posted GAAP earnings of 23 cents per share against a loss of 3 cents in the year-ago quarter.
Revenues
Enphase Energy’s revenues of $180.1 million in the third quarter surpassed the Zacks Consensus Estimate of $176 million by 2%. The top line surged 130.8% from the year-ago quarter’s $78 million driven by solid shipments.
Enphase Energy, Inc. Price, Consensus and EPS Surprise
Enphase Energy’s total shipments during the reported quarter amounted to approximately 584 megawatts DC or 1,795,653 microinverters.
Gross profit totaled $64.7 million, soaring 156.1% from $25.3 million a year ago.
Total operating expenses increased 20.9% year over year to $31 million. The uptick can be attributed to higher research and development, sales and marketing along with general and administrative expenses.
Operating income during the quarter totaled $33.7 million against loss of $0.4 million in the year-ago quarter.
Financial Performance
Enphase Energy had $203 million of cash and cash equivalents as of Sep 30, 2019, up from $106 million at the end of 2018.
Cash flow from operating activities amounted to $5 million at the end of third quarter 2019 compared with $6.8 million in the year-ago period.
Long-term liabilities were $224.6 million at the end of the third quarter compared with $185 million as of Dec 31, 2018.
Q4 Guidance
For fourth-quarter 2019, Enphase Energy expects to generate revenues of $200-$210 million. The Zacks Consensus Estimate for the same is pegged at $192.6 million, lower than the company’s guided range.
Non-GAAP operating expenses are expected between $24.5 million and $26.5 million, excluding approximately $7 million estimated for stock-based compensation expenses, acquisition-related expenses and amortization.
GAAP and non-GAAP gross margins are likely to be in the range of 34-37%.
SolarEdge Technologies (SEDG - Free Report) , a Zacks Rank #3 stock, is slated to release third-quarter 2019 results on Nov 6.
Sunworks, Inc. , carrying a Zacks Rank #3, is due to release third-quarter 2019 results on Oct 31.
JinkoSolar Holding Company Limited (JKS - Free Report) , a Zacks Rank #2 stock, is scheduled to release third-quarter 2019 results on Nov 19.
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Enphase Energy (ENPH) Q3 Earnings Beat, Revenues Up Y/Y
Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2019 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 25 cents by 20%. The bottom line also improved a massive 650% from 4 cents reported in the prior-year quarter.
The year-over-year uptick can be attributed to solid revenues as well as operating income growth witnessed in the third quarter.
Barring one-time adjustments, the company posted GAAP earnings of 23 cents per share against a loss of 3 cents in the year-ago quarter.
Revenues
Enphase Energy’s revenues of $180.1 million in the third quarter surpassed the Zacks Consensus Estimate of $176 million by 2%. The top line surged 130.8% from the year-ago quarter’s $78 million driven by solid shipments.
Enphase Energy, Inc. Price, Consensus and EPS Surprise
Enphase Energy, Inc. price-consensus-eps-surprise-chart | Enphase Energy, Inc. Quote
Operational Highlights
Enphase Energy’s total shipments during the reported quarter amounted to approximately 584 megawatts DC or 1,795,653 microinverters.
Gross profit totaled $64.7 million, soaring 156.1% from $25.3 million a year ago.
Total operating expenses increased 20.9% year over year to $31 million. The uptick can be attributed to higher research and development, sales and marketing along with general and administrative expenses.
Operating income during the quarter totaled $33.7 million against loss of $0.4 million in the year-ago quarter.
Financial Performance
Enphase Energy had $203 million of cash and cash equivalents as of Sep 30, 2019, up from $106 million at the end of 2018.
Cash flow from operating activities amounted to $5 million at the end of third quarter 2019 compared with $6.8 million in the year-ago period.
Long-term liabilities were $224.6 million at the end of the third quarter compared with $185 million as of Dec 31, 2018.
Q4 Guidance
For fourth-quarter 2019, Enphase Energy expects to generate revenues of $200-$210 million. The Zacks Consensus Estimate for the same is pegged at $192.6 million, lower than the company’s guided range.
Non-GAAP operating expenses are expected between $24.5 million and $26.5 million, excluding approximately $7 million estimated for stock-based compensation expenses, acquisition-related expenses and amortization.
GAAP and non-GAAP gross margins are likely to be in the range of 34-37%.
Zacks Rank
Enphase Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Solar Releases
SolarEdge Technologies (SEDG - Free Report) , a Zacks Rank #3 stock, is slated to release third-quarter 2019 results on Nov 6.
Sunworks, Inc. , carrying a Zacks Rank #3, is due to release third-quarter 2019 results on Oct 31.
JinkoSolar Holding Company Limited (JKS - Free Report) , a Zacks Rank #2 stock, is scheduled to release third-quarter 2019 results on Nov 19.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>