Enphase Energy, Inc

.

ENPH

is scheduled to report first-quarter 2022 results on Apr 26 after the closing bell.

In the last reported quarter, the company delivered an earnings surprise of 28.07%. Enphase Energy has a trailing four-quarter earnings surprise of 29.63%, on average.

Factors to Note

The increased demand for Enphase Energy’s storage systems, particularly in the United States, is likely to have significantly boosted its shipments growth in the first quarter. Moreover, ENPH expects sequential growth of 15% in the shipments of its storage systems in the first quarter. This, in turn, is likely to have enhanced the company’s revenues in the to-be-reported quarter.

Also, the addition of the fully automated line in the last quarter, which assisted in bringing the quarterly capacity to 2.25 million microinverters in Mexico, must have bolstered Enphase Energy’s manufacturing capacity. This, in turn, is likely to have aided the top line of the company.

Moreover, Enphase Energy’s first-quarter top line is projected to have benefited from the growth of the Enphase installer network and the continued adoption of its high-power IQ 8 microinverters.

Apart from the United States, strong demand for ENPH products in Europe and the company’s continued expansion in other regions are expected to have positively impacted Enphase Energy’s top line in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $434.3 million, suggesting growth of 43.9% from the year-ago quarter.

However, higher logistics costs, driven by inflation, are likely to have dented the bottom line of the company in the to-be-reported quarter. However, the anticipated strong revenue performance makes us optimistic about its bottom line in the first quarter.

The Zacks Consensus Estimate for

first-quarter earnings

is pegged at 65 cents per share, indicating an improvement of 16.1% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Enphase Energy this time. 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. However, that is not the case here.

Earnings ESP

: ENPH’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

Zacks Rank

: Enphase Energy currently carries a Zacks Rank #2. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

Stocks to Consider

Here are three

Solar

players you may want to consider as they have the right combination of elements to post an earnings beat this season:

Sunrun


RUN

currently has an Earnings ESP of +125.8% and a Zacks Rank #3. The Zacks Consensus Estimate for Sunrun’s Q1 earnings suggests year-over-year growth of 63.6% from the prior-year reported figure.

The Zacks Consensus Estimate for RUN’s Q1 sales implies year-over-year growth of 12.8% from the prior-year reported figure.

SolarEdge Technologies


SEDG

currently has an Earnings ESP of +2.08% and a Zacks Rank #3. The Zacks Consensus Estimate for SolarEdge’s Q1 earnings, pegged at $1.32 per share , implies a year-over-year improvement of 34.7% from the prior-year reported figure.

The company boasts a long-term earnings growth rate of 24.7%. SEDG has a four-quarter earnings surprise of 0.42%.

SunPower


SPWR

currently has an Earnings ESP of +366.7% and a Zacks Rank #3. The Zacks Consensus Estimate for its Q1 earnings, pegged at 3 cents per share, implies a year-over-year decline of 40% from the prior-year reported figure.

The Zacks Consensus Estimate for SunPower’s Q1 sales suggests year-over-year growth of 9.2% from the prior-year reported figure. SPWR has a four-quarter earnings surprise of 8.33%.

Stay on top of upcoming earnings announcements with the

Zacks Earnings Calendar

.

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