Enphase Energy, Inc.
ENPH
is set to report fourth-quarter 2020 results on Feb 9, after market close.
In the last reported quarter, the company delivered an earnings surprise of 25%. Moreover, the bottom line outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average being 20.84%.
Factors at Play
Since the third quarter, Enphase Energy has started witnessing a solid uptick in demand across the global solar market, overcoming the challenges initially imposed by the coronavirus outbreak. This in turn is expected to have benefited the company’s fourth-quarter performance.
Enphase Energy, Inc. Price and EPS Surprise
Enphase Energy, Inc. price-eps-surprise
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Enphase Energy, Inc. Quote
Notably, during the soon-to-be-reported quarter, Enphase Energy began volume shipments of its Encharge storage system to customers in North America. In fact, after witnessing increased demand in the solar market, the company ramped up its production during the third quarter and is expected to have recorded higher production levels in the fourth quarter. It is expected to achieve the target of 1 million units from its factory in Mexico in the fourth quarter of 2020. Such production ramp up and subsequent increased shipments must have translated into solid revenue growth for the company in the fourth quarter.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $256.3 million, indicating a 22% improvement from the figure reported in the year-ago quarter.
Solid revenue expectations along with significant contributions from Encharge storage systems sales are expected to have boosted the company’s fourth-quarter gross margin. Since suppliers of Enphase Energy have ramped up their delivery count since the third quarter, the resultant benefit should have bolstered the company’s Q4 earnings performance.
As a result, the Zacks Consensus Estimate for fourth-quarter earnings is pegged at 40 cents per share, implying an increase of 2.6% from the year-earlier quarter’s reported figure.
What the Zacks Model Unveils
Our proven model predicts 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 odds of an earnings beat. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Enphase Energy has an Earnings ESP of +2.89% and a Zacks Rank #3, currently. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Upcoming Solar Releases
SunPower
SPWR
is scheduled to post fourth-quarter 2020 results on Feb 17.
SolarEdge Technologies
SEDG
is set to release its fourth-quarter numbers on Feb 16.
Sunrun
RUN
is set to release fourth-quarter 2020 results on Feb 25.
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