Enphase Energy Inc (NASDAQ: ENPH) opened about 25% up in the stock market this morning after its third-quarter results came in better than expected.
Q3 financial performance
Enphase said its sales jumped to a record $352 million in Q3 versus the year-ago figure of $179 million only. Net income printed at $22 million that translates to 60 cents of adjusted per-share earnings. In comparison, analysts had called for 49 cents of adjusted EPS on $345 million in sales.
Earlier this week, Enphase launched IQ8 solar microinverters, which take direct current generated by solar panels and convert it into alternating current (AC). According to CEO Badri Kothandaraman:
Many homeowners often assume that their solar systems will function if the sun is shining, even during a power outage. This has unfortunately not been true until today. Now, with IQ8, homeowners can realize the true promise of solar – to make and use their own power.
Future guidance and stock rating
For the fiscal fourth quarter, Enphase now forecasts its revenue to fall in the range of $390 million to $410 million, as per the earnings press release.
The strong Q3 results made Evercore analysts reiterate Enphase Energy at “outperform” with a price target of $216 that it already touched on Wednesday.
The investment banking advisory group is convinced of the solar energy company’s ability to navigate through the supply chain and logistics issues. With IQ8, they added, Enphase is “in the midst of a breakthrough new product cycle.”
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