Home energy technology company Enphase (NASDAQ:ENPH) will be reporting results this Tuesday after market close. Here’s what investors should know.
Enphase beat analysts’ revenue expectations by 12% last quarter, reporting revenues of $410.4 million, up 7.8% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Enphase a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Enphase’s revenue to decline 12% year on year to $336.9 million, a reversal from the 26.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.58 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Enphase has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Enphase’s peers in the electrical equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Nextpower delivered year-on-year revenue growth of 33.9%, beating analysts’ expectations by 11.5%, and LSI reported flat revenue, topping estimates by 4.9%. Nextpower traded up 13.3% following the results while LSI was also up 8.6%.
Read our full analysis of Nextpower’s results here and LSI’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 5.1% on average over the last month. Enphase is up 8.2% during the same time and is heading into earnings with an average analyst price target of $39.46 (compared to the current share price of $36.84).
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