Enphase Energy, Inc. ENPH reported second-quarter 2024 adjusted earnings of 43 cents per share, highlighting a 70.7% decline from $1.47 reported in the prior-year quarter. The bottom line also lagged the Zacks Consensus Estimate of 49 cents per share by 12.2%.
Including one-time adjustments, the company posted GAAP earnings of 8 cents per share, which significantly deteriorated from the year-ago quarter’s earnings of $1.09.
The year-over-year deterioration can be attributed to a double-digit decline in second-quarter 2024 revenues compared to the year-ago quarter.
Revenues
Enphase Energy’s second-quarter revenues of $303.5 million missed the Zacks Consensus Estimate of $314 million by 1.8%. The top line also declined 57.3% from the prior-year quarter’s reported figure of $711.1 million.
Enphase Energy, Inc. Price, Consensus and EPS Surprise 
Enphase Energy, Inc. price-consensus-eps-surprise-chart | Enphase Energy, Inc. Quote
Operational Update
The company’s shipments amounted to approximately 608.3 megawatts-direct current (MWdc) or 1,402,602 microinverters and 120.2 MW hours of Enphase IQ Batteries.
Enphase Energy’s adjusted gross margin expanded 90 basis points year over year to 47.1%.
Adjusted operating expenses dropped 16.8% year over year to $81.7 million.
The adjusted operating income totaled $61.1 million, down 73.5% from $230.5 million reported in the year-ago quarter.
Financial Details
Enphase Energy generated cash and cash equivalents worth $252.1 million as of Jun 30, 2024 compared with $288.7 million as of Dec 31, 2023.
Cash flow from operating activities amounted to $127.1 million as of Jun 30, 2024 compared with $269.2 million in the prior-year period.
Q3 Guidance
For the third quarter of 2024, ENPH expects revenues in the range of $370-$410 million. The Zacks Consensus Estimate for third-quarter revenues is pegged at $408.1 million, which lies above the midpoint of the company’s guided range.
Enphase Energy expects shipments in the range of 160-180 MW hours of IQ batteries for the third quarter.
Adjusted operating expenses are expected between $79 million and $83 million. This excludes approximately $59 million estimated for stock-based compensation expenses, acquisition-related amortization and restructuring.
The adjusted gross margin is expected in the range of 47%-50%, excluding stock-based compensation expenses and acquisition-related amortization.
Zacks Rank
Enphase Energy currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Solar Releases
First Solar, Inc. FSLR is scheduled to report second-quarter 2024 results on Jul 30 after market close. The Zacks Consensus Estimate for First Solar’s second-quarter earnings is pegged at $2.67 per share, which calls for an increase of 44.3% from the prior year quarter’s reported figure.
The Zacks Consensus Estimate for FSLR’s second-quarter sales is pegged at $946.2 million, which implies an improvement of 16.7% from the prior-year quarter’s reported figure.
Sunnova Energy International NOVA is set to report second-quarter 2024 results on Jul 31 after market close. The Zacks Consensus Estimate for Sunnova Energy’s second-quarter earnings is pegged at a loss of 54 cents per share, which indicates an improvement from the prior-year quarter’s reported loss of 74 cents per share.
The Zacks Consensus Estimate for NOVA’s second-quarter sales is pegged at $220.3 million, which implies a rise of 32.4% from the prior year quarter’s reported figure.
Nextracker Inc. NXT is slated to report second-quarter 2024 results on Aug 1 after market close. The Zacks Consensus Estimate for Nextracker’s second-quarter earnings is pegged at 66 cents per share, which suggests growth of 37.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for NXT’s second-quarter sales is pegged at $618.1 million, which calls for an improvement of 29% from the prior-year quarter’s reported figure.
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