Enphase Energy Q1 Earnings Miss Estimates, Revenues Rise Y/Y

Enphase Energy, Inc. ENPH reported first-quarter 2025 adjusted earnings of 68 cents per share, which increased 94.3% from 35 cents reported in the prior-year quarter. However, the bottom line missed the Zacks Consensus Estimate of 71 cents by 4.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Including one-time adjustments, the company posted GAAP earnings of 22 cents per share against the loss of 12 cents incurred in the year-ago quarter.

The year-over-year earnings improvement can be attributed to higher revenues and income from operations from the year-ago quarter.

ENPH’s Q1 Revenues

Enphase Energy’s first-quarter revenues of $356.1 million missed the Zacks Consensus Estimate of $362 million by 1.7%. However, the top line increased 35.2% from the prior-year quarter’s reported figure of $263.3 million.

The year-over-year jump was driven by higher battery sales in Europe, where the company ramped up shipments of its IQ Battery 5P with FlexPhase.

Enphase Energy’s Operational Update

The company’s shipments amounted to approximately 1.53 million microinverters and 170.1 MW hours of Enphase IQ Batteries.

The company’s adjusted gross margin increased 270 basis points year over year to 48.9%.

Adjusted operating expenses dropped 3.8% year over year to $79.4 million.

The adjusted operating income totaled $94.6 million, up 142.7% from the year-ago quarter.

Financial Details of ENPH

Enphase Energy had $350.1 million in cash and cash equivalents as of March 31, 2025 compared with $369.1 million as of Dec. 31, 2024.

Cash flow from operating activities amounted to $48.4 million as of March 31, 2025 compared with $167.3 million as of Dec. 31, 2024.

Q2 Guidance of Enphase Energy

For the second quarter of 2024, ENPH expects revenues in the range of $340-$380 million. The Zacks Consensus Estimate for second-quarter revenues is pegged at $379.6 million, which lies near the higher end of the company’s guided range.

Enphase Energy expects shipments in the range of 160-180 MW hours of IQ batteries for the second quarter.

Adjusted operating expenses are expected between $78 million and $82 million. This excludes approximately $58 million estimated for stock-based compensation expenses and acquisition-related costs and amortization, as well as restructuring and asset impairment charges.

The adjusted gross margin is expected in the range of 44-47%, excluding stock-based compensation expenses and acquisition-related amortization.

ENPH’s Zacks Rank

Enphase Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Solar Releases

First Solar, Inc. FSLR is scheduled to report first-quarter 2025 results on April 29, after market close. The Zacks Consensus Estimate for FSLR’s first-quarter earnings is pegged at $2.48 per share, which calls for an increase of 12.7% from the prior-year quarter’s figure.

The Zacks Consensus Estimate for FSLR’s first-quarter sales is pegged at $851.9 million, which implies an improvement of 7.3% from the prior-year quarter’s figure.

SolarEdge Technologies SEDG is slated to report first-quarter 2025 results on May 6, before market open. The Zacks Consensus Estimate for SEDG’s first-quarter earnings is pegged at a loss of $1.27 per share.

The Zacks Consensus Estimate for SEDG’s first-quarter sales is pegged at $204.4 million, which indicates an improvement of 0.01% from the prior-year quarter’s figure.

Canadian Solar, Inc. CSIQ is expected to report first-quarter 2025 results soon. The Zacks Consensus Estimate for CSIQ’s first-quarter earnings is pegged at a loss of $1.25 per share.

The Zacks Consensus Estimate for CSIQ’s first-quarter sales is pegged at $1.09 billion, which implies a decline of 17.8% from the prior-year quarter’s figure.

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This article originally published on Zacks Investment Research (zacks.com).

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