Emily Dattilo
Shares of Enphase Energy were trading higher after the installer of residential solar panels and storage solutions turned in strong quarterly results and upbeat guidance.
For its fourth quarter, the company late Tuesday reported adjusted earnings per share of 94 cents, beating Wall Street's call for 73 cents, according to FactSet. Revenue of $382.7 million was above the consensus estimate for $377.2 million.
Guggenheim analysts Joseph Osha and Hilary Caluey, who rate Enphase stock at Neutral, wrote that the U.S. continues to be the company's "most important market by far," with U.S. revenue accounting for nearly 80% of the quarter's total.
Enphase forecasts first-quarter revenue of $340 million to $380 million, with the $360 million midpoint topping the $355 million estimate from analysts. The first quarter includes about $50 million of safe harbor revenue, which the company defines as "any sales made to customers who plan to install the inventory over more than one year."
That element was highlighted by Truist Securities analysts led by Jordan Levy, who rate Enphase stock at Hold with a price target of $65.
"Backing out the SH [safe harbor] revenues implies underlying demand down about 14% year over year, driven by continued challenges in the European market that we see as likely to persist for the coming quarters, " they wrote.
Seaport Research analyst Tom Curran, who rates Enphase stock at Buy with a price target of $129, offered a brighter view, writing that the company "delivered the type of report the stock needed." Shares have fallen 44% over the past 12 months, but were edging higher after the print.
Enphase stock gained 3% to $68.22 in premarket trading Wednesday. Solar peers were also in the green. Sunrun rose 1.8%, SolarEdge jumped 2.5%, Sunnova increased 2%, and First Solar edged 1.1% higher.
Write to Emily Dattilo at emily.dattilo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
February 05, 2025 08:31 ET (13:31 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.