Enphase Energy (NASDAQ:ENPH), a supplier of microinverter-based solar and battery systems, soared in pre-market trading even as its Q4 results fell short of estimates. The company announced adjusted earnings of $0.54 per share compared to $1.51 per share in the same period last year. Analysts were expecting the company to report earnings of $0.55 per share.
Enphase generated revenues of $302.6 million in the fourth quarter, a decline of 58.2% year-over-year and below consensus estimates of $328 million.
Looking forward to the first quarter, the company expects to generate revenues in the range of $260 million to $300 million. This estimate includes shipments of 70 to 90 megawatt hours of IQ Batteries. Enphase also anticipates an adjusted gross margin of between 44% and 47% in the first quarter.
Is Enphase a Buy or Sell?
Analysts remain cautiously optimistic about ENPH stock with a Moderate Buy consensus rating based on 12 Buys, seven Holds, and one Sell. Over the past year, ENPH stock has slid by more than 50%, and the average ENPH price target of $129.24 implies an upside potential of 28.6% at current levels.
