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Enphase Energy (NASDAQ:ENPH) +18.5% in early trading Wednesday despite missing expectations for Q4 adjusted earnings and revenues, after the company said it expects inventory levels to normalize and demand for its products to pick up by the end of Q2.
Q4 net income fell to $21M, or $0.15/share, from $154M, or $1.06/share, in the year-earlier quarter, while revenues fell 58% Y/Y to $302.6M.
Enphase (ENPH) said Q4 revenues in Europe plunged ~70% Q/Q, as it reduced shipments to manage rising inventory levels at distribution partners, but the company expects demand and margins for its batteries and microinvertors will improve throughout 2024.
“We think Q1 could be the bottom quarter, CEO Badri Kothandaraman said on the company’s post-earnings conference call. “Europe is already showing early signs of recovery, and we expect the non-California states to bounce back quickly.”
Enphase’s (ENPH) optimism is pulling other solar stocks higher, including SolarEdge Technologies (SEDG) +12.1%, Sunnova Energy (NOVA) +7.3%, Maxeon Solar (MAXN) +6.8%, Array Technologies (ARRY) +5.1%, JinkoSolar (JKS) +5%, First Solar (FSLR) +3.9%, Sunrun (RUN) +3%.
Oppenheimer analysts upgraded Enphase (ENPH) to Outperform from Market Perform with a $133 price target, believing downside scenarios are now fully built into expectations.
The firm said it believes “a beatable baseline on sales/margin is being established and the company is delivering on product enhancements that drive system level performance and cost reductions.”
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