Energy & Mining

Enphase Energy Inc (NASDAQ:ENPH) Bests Price Target!

Enphase Energy Inc (NASDAQ:ENPH)

Enphase Energy Inc (NASDAQ:ENPH) stock is up 18%, to the $1.70 handle,  in mid-morning trading action after the solar technology company beat street forecasts. Enphase reported a Q3 (-$6.9) million loss on revenues of $77 million.  of $6.9 million in its third quarter. Adjusted for non-recurring costs and stock option expense, the per share loss came to (-$0.01). The Zacks Investment Research consensus of analysts was for a per share loss of (-$0.05). The company reported an ending cash balance of $28.9 million.

Enphase Energy Inc (NASDAQ:ENPH)

Badri Kothandaraman, president and CEO of Enphase Energy Inc (NASDAQ:ENPH) stated “We completed the transition to our sixth-generation IQ Microinverter System for our North American customers during the third quarter, and we expect to introduce our seventh-generation IQ product worldwide in the first quarter of 2018. These transitions, along with our continued focus on operational excellence, will help drive further gross margin improvement.”

Enphase Business Outlook

For the current quarter ending in December, Enphase Energy Inc (NASDAQ:ENPH) said it expects revenue in the range of $72 million to $80 million. Q4 GAAP and non-GAAP gross margin are expected to be within a range of 21.5% to 24.5%. Non-GAAP gross margin excludes approximately $300,000 of stock-based compensation expense. Enphase’s GAAP operating expense for the fourth quarter should be between $19.5 million and $21.5 million with non-GAAP operating expense to be within a range of $16 million to $18 million, excluding an estimated $1.4 million of stock-based compensation expense and approximately $2.1 million of additional restructuring expense.

ENPH Stock Performance

Six firms follow Enphase Energy Inc (NASDAQ:ENPH). Three rate ENPH stock as a “Hold”. Two rate the shares as a “Strong Buy”, and one rates ENPH as an “Underperform”.

Sales rose from 2012 when the company reported $216.7 million, to 2015 when the company reported a figure of $357.2 million. However, for 2016, the company posted its first drop in aggregate sales and posted $322.6 million.

Earnings have come with difficulty over the years. In 2012 the company posted a per share loss of (-$1.24) per share. The next two years saw smaller year-on-year losses, then the losses began expanding and in 2016 came in at (-$1.34) per share.

Despite the losses, performance in the market has been robust over the past year (+25.9%) and year-to-date (+44.6%). The price action today has exceed the analysts’ consensus, one-year price target of $1.58.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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