Solar stocks boosted after strong Enphase earnings report


Solar energy stocks rose sharply on Wednesday after microinverter maker Enphase Energy (ENPH) – Get the report from Enphase Energy, Inc. announced higher-than-expected third-quarter earnings.

Earnings totaled $22 million, well beating FactSet’s analyst consensus of $16 million. Adjusted earnings recorded 60 cents per share, easily beating analysts’ forecast of 49 cents.

Revenue hit a record $352 million, up from $179 million last year and above analyst consensus of $345 million.

Enphase is also seeing record fourth-quarter revenue — to the tune of $390 million to $410 million.

Shares of the company recently traded at $206.78, up 19%; SolarEdge (SEDG) – Get the report from SolarEdge Technologies, Inc. traded at $338.40, up 8%; sunrun (CLASSES) – Get the report from Sunrun Inc. traded at $55.40, up 5%; and first solar (FSLR) – Get the report from First Solar, Inc. was trading at $114.03, up 5%.

Scroll to continue

Invesco Solar ETF (TANNING) – Get the Invesco Solar ETF report, the largest solar ETF, recently traded at $94.35, up 5.2%. It slid 13% year-to-date through Tuesday on concerns over solar stock valuations. But it has soared 209% in the past two years amid enthusiasm for renewable energy.

As for Enphase, analysts made positive comments after the earnings report. “With strong results and guidance ahead of the street, ENPH sees the benefits of diversifying its supply chain and investing in customer service/education,” Oppenheimer’s Colin Rusch wrote.

“We are encouraged to see the company moving forward with capacity expansions. We expect the company to quickly reach this capacity, which is up 30% from our revenue estimates for 2022. …

“We believe the potential growth of the commercial rooftop market is not yet reflected in Street’s estimates.”

Rusch reiterated his outperform rating and $225 price target.


Comments are closed.