Enphase Energy, Inc. ENPH is scheduled to report fourth-quarter 2024 results on Feb. 4, after the closing bell.

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In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 16.67%. Enphase Energy has a trailing four-quarter average negative earnings surprise of 11.40%.

Factors to Note Ahead of ENPH’s Results

ENPH has been experiencing a broad-based slowdown in demand for its products across the United States since the second quarter of 2023 and in Europe since the second half of 2023. However, with improving market fundamentals and new product launches, the company is likely to report a robust top-line performance in the fourth quarter.

Within the United States, higher sell-through of its microinverters and batteries is likely to have reflected positive year-over-year growth trends, thereby boosting its revenue growth from this nation.

Within Europe, countries like France, the Netherlands and Germany are expected to deliver solid sales performance. However, its overall revenue performance in Europe is likely to have been unimpressive in the fourth quarter due to regulatory uncertainty around net energy metering and export penalties imposed by the energy providers.

Solid sales performance from other nations like Brazil and Australia is expected to have contributed favorably to ENPH’s overall revenues.

In terms of new product launch, in November 2024, Enphase Energy unveiled the IQ Powerpack 1500 portable energy system in the solar markets of the United States and Canada. Its Enphase Energy System, featuring the new IQ Battery 5P and IQ8 Microinverters, was also launched in the same month in Romania. In October, the company launched its IQ8X Microinverters in the Netherlands and Austria, and its IQ8 Microinverter Series in Malta and New Caledonia. Such product introductions are likely to have further boosted the top-line performance of the company.

The Zacks Consensus Estimate for ENPH’s fourth-quarter sales is pinned at $376 million, which indicates year-over-year growth of 24.3%.

As Enphase Energy continues to make steady investments in new products and customer service, favorable returns and gross margin improvement are expected to have boosted its earnings. A robust top-line performance is also likely to have bolstered its overall bottom-line performance.

The Zacks Consensus Estimate for earnings per share is pinned at 75 cents, which indicates year-over-year growth of 38.9%.

Enphase Energy, Inc. Price and EPS Surprise

Enphase Energy, Inc. price-eps-surprise | Enphase Energy, Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Enphase Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Earnings ESP: Enphase Energy’s Earnings ESP is -1.76%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Enphase Energy currently carries a Zacks Rank #3.

Stocks to Consider

Here are three companies from the same industry that have the right combination of elements to post an earnings beat this reporting cycle.

Sunrun RUN is set to report fourth-quarter 2024 earnings on Feb. 27, 2025, after the closing bell. It has an Earnings ESP of +20.02% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RUN’s fourth-quarter loss is pegged at 25 cents per share, indicating an improvement from the prior-year quarter’s reported loss of $1.33 per share. The consensus estimate for its sales is pegged at $538.4 million.

FTC Solar FTCI is expected to report fourth-quarter 2024 earnings soon. It has an Earnings ESP of +5.65% and a Zacks Rank of 3.

The Zacks Consensus Estimate for FTCI’s loss is pegged at 83 cents per share. The consensus estimate for its sales is pegged at $11.5 million.

SolarEdge Technologies SEDG is expected to report fourth-quarter 2024 earnings soon. It has an Earnings ESP of +18.47% and a Zacks Rank of 3.

The Zacks Consensus Estimate for SEDG’s loss is pegged at $1.76 per share. The consensus estimate for its sales is pegged at $186.7 million.

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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report

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