Home energy technology company Enphase (NASDAQ: ENPH) will be announcing earnings results this Tuesday afternoon. Here’s what you need to know.
Enphase met analysts’ revenue expectations last quarter, reporting revenues of $282.9 million, down 20.6% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates.
Is Enphase a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Enphase’s revenue to decline 20.1% year on year, a reversal from the 19.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Enphase has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Enphase’s peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 3.1%, and Teledyne reported revenues up 9.8%, topping estimates by 5.3%. Allegion traded up 9.6% following the results while Teledyne’s stock price was unchanged.
Read our full analysis of Allegion’s results here and Teledyne’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the electrical equipment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Enphase is down 23.7% during the same time and is heading into earnings with an average analyst price target of $48.93 (compared to the current share price of $36.97).
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