Enphase Energy (ENPH) to Post Q1 Earnings: What's in Store?

Zacks Equity Research
·3-min read

Enphase Energy, Inc. ENPH is set to report first-quarter 2021 results on Apr 27, after market close.

In the last reported quarter, the company delivered an earnings surprise of 27.50%. Moreover, the bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 23.17%.

Factors at Play

Since the third quarter, Enphase Energy started witnessing a solid uptick in demand across the global solar market, overcoming the initial challenges imposed by the coronavirus outbreak. This is evident as the company's production in the fourth quarter of 2020 was more than double the level produced in the second quarter.

Its production ramp is also moving at a brisk pace, as the company expects to have produced approximately 400,000 microinverters in India during the first quarter. This is likely to have benefited the top-line performance. Despite the negative seasonality the solar industry is likely to have faced in the first quarter, its storage shipment is expected to have expanded strongly in the same timeframe.

Furthermore, on the fourth-quarter earnings call, the company revealed that its customer demand for the first quarter will significantly exceed the high-end of its guidance range.

In line with such developments and projections, the Zacks Consensus Estimate for first-quarter revenues is pegged at $292.7 million, indicating a 42.4% improvement from the figure reported in the year-ago quarter.

Solid revenue growth from product shipment is expected to have boosted the company’s first-quarter gross margin. Solid margin growth hints at pushing up its earnings figure.

Moreover, since suppliers of Enphase Energy have ramped up their delivery count since the third quarter of 2020, the resultant benefit is likely to have bolstered its Q1 earnings performance.

As a result, the Zacks Consensus Estimate for first-quarter earnings is pegged at 41 cents per share, implying an increase of 7.9% from the year-earlier quarter’s reported figure.

Earnings Whispers

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. But that is not the case here.

Earnings ESP: The company’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 carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Enphase Energy, Inc. Price and EPS Surprise

Enphase Energy, Inc. Price and EPS Surprise
Enphase Energy, Inc. Price and EPS Surprise

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

Upcoming Solar Releases

First Solar FSLR is scheduled to post first-quarter 2021 results on Apr 29.

SolarEdge Technologies SEDG is set to release first-quarter numbers on May 3.

Sunrun RUN is set to release first-quarter 2021 results on May 5.

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