Shares of Enphase (ENPH) jumped in after-hours trading after the solar company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $0.43, which missed analysts’ consensus estimate of $0.49 per share. In addition, sales decreased by 57.3% year-over-year, with revenue hitting $303.5 million. This also missed analysts’ expectations of $309.6 million.
Looking forward, management now expects revenue and non-GAAP gross margin for Q3 2024 to be in the ranges of $370.0 million to $410.0 million and 47% to 50%, respectively. For reference, analysts were expecting $408.4 million in revenue.
Insider Activity
When looking at insider activity, there seems to be a lot of selling. In fact, insiders have sold $45.5 million worth of shares in the past three months. As a result, confidence from within appears to be low, as the Insider Confidence Signal for ENPH stock is negative, and is below the sector average, as shown in the image below.
Is Enphase a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ENPH stock based on 16 Buys, eight Holds, and three Sells assigned in the past three months. After a 41% decline in its share price over the past year, the average ENPH price target of $128.41 per share implies 22.74% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
