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.

Don’t miss out! Stay informed on $ENPH and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Enphase Energy Inc (NASDAQ:ENPH)

Enphase Energy Inc (NASDAQ:ENPH) Stock Rallies on CEO Resignation

Enphase Energy Inc (NASDAQ:ENPH)

Enphase Energy Inc (NASDAQ:ENPH) stock rallied 4.27% after the company announced the resignation of current CEO, Paul Nahi. The rally also came after the company reported a smaller than expected second quarter net loss.

Enphase stock price chart:

Enphase Energy Inc (NASDAQ:ENPH)
One month Enphase stock price chart

Enphase Stock Performance

Enphase Energy Inc (NASDAQ:ENPH) shares face a lot of uncertainty in the market even after the brief rally. Enphase stock had initially powered to highs of $1.10 a share, before retreating to $0.928 a share. A bearish tone appears to be building on the stock as investors continue to react to Q2 net loss and imminent management changes.

The company bills itself as a leading provider of energy management solutions. Enphase Energy Inc (NASDAQ:ENPH) designs, develops and manufactures micro inverter systems for the solar photovoltaic industry. The global energy technology company also delivers smart easy to use solutions for connecting solar generation storage management solutions on one intelligent platform.

Enphase Q2 Earnings Report

Enphase Energy Inc (NASDAQ:ENPH) says it generated total revenues of $74.7 million for the three months ended June 30, 2017, representing a 36% year over year increase. Gross margin in the quarter dropped to 18.1% from 18.9% as of last year. GAAP operating expense dropped 22% to $22.8 million.

Net loss for the quarter dropped to (-$12.1) million from (-$16.7) million reported in Q2 2016. Enphase energy generated a total of $1 million in cash in the quarter to exit with a total cash balance of $31 million.

“We believe the combination of operating expense reduction, supply chain optimization and the transition to our sixth-generation IQ Microinverter System will enable us to achieve non-GAAP operating income profitability by the fourth quarter of 2017,” said Bert Garcia, CFO of Enphase Energy Inc (NASDAQ:ENPH).

For the third quarter, Enphase Energy says it expects revenues of between $72 million and $80 million which should lead to a gross margin of between 18% and 21%.

CEO Appointment

Enphase Energy Inc (NASDAQ:ENPH) has also confirmed that it has started the process of recruiting a new CEO following the resignation of Mr. Nahi.

“It has been an enormous privilege to lead Enphase since inception and through its growth to become a leading global energy technology company,” said Paul Nahi

Following Mr. Nahi resignation, Enphase Energy Inc (NASDAQ:ENPH) board of directors has appointed Bert Garcia, CFO, and Badri Kothandaraman, COO to oversee and provide leadership pending appointment of new CEO probably before August 31, 2017.

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.

Don’t miss out! Stay informed on $ENPH and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.