Enphase Energy (ENPH) to Post Q2 Earnings: What's in Store?

Enphase Energy, Inc. ENPH is set to report second-quarter 2020 results on Aug 4, after market close.

In the last reported quarter, the company delivered an earnings surprise of 18.75%. Moreover, the bottom line outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average being 23.85%.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

During the second quarter, there were industry reports that showed a 30-50% drop in U.S. residential installations in April with New York and California recording the maximum declines. As this pandemic-caused downside further induced a near-term demand and supply-chain disruption in the period to be reported, it is likely that the company’s overall quarterly revenues might have taken a hit from such unfavorable events.

Consequently, the Zacks Consensus Estimate for second-quarter revenues is pegged at $124.4 million, indicating a 7.3% decrease from the figure reported in the year-ago quarter.

Additionally, the continued bleak demand situation in the June quarter might have hampered the shipments of products manufactured by Enphase Energy. This suggests that the finished products are lying idle in the warehouse or storage facilities of the company which in turn, is expected to have escalated its quarterly storage or idle facility cost. Further, this might have dragged down Enphase Energy’s bottom line in the soon-to-be-reported quarter.

As a result, the Zacks Consensus Estimate for second-quarter earnings is pegged at 14 cents per share, implying a deterioration of 22.2% from the year-earlier quarter’s reported figure of 18 cents.

What the Zacks Model Unveils

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 odds of an earnings beat. But that’s not the case here as elaborated below.

Enphase Energy has an Earnings ESP of -13.25% and a Zacks Rank #2, currently.  You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Canadian Solar CSIQ carries a Zacks Rank of 2 at present and is scheduled to post second-quarter 2020 results on Aug 7. You can see the complete list of today’s Zacks #1 Rank stocks here.

First Solar FSLR currently has a Zacks Rank #3 and is set to release second-quarter 2020 results on Aug 6.

Vivint Solar VSLR is presently Zacks #3 Ranked and is scheduled to post second-quarter 2020 results on Aug 5.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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