Enphase Power Q3 preview: Robust demand prone to energy one more earnings beat

Enphase Power (NASDAQ:ENPH) is scheduled to announce Q3 earnings outcomes on Tuesday, Oct. 25, after market shut.

The consensus EPS estimate is $1.09 (+81.7% Y/Y) and the consensus income estimate is $615.85M (+75.2% Y/Y).

Over the past 2 years, ENPH has crushed EPS and income estimates 100% of the time. Over the past 3 months, each EPS and income estimates have seen 23 upward revisions.

KeyBanc believes the solar energy agency is “finest positioned to develop and execute by way of near-term headwinds, given its world presence and dominant market share”.

Guggenheim Companions downgraded Enphase (ENPH) because the inventory seems pretty valued, however clarified that this didn’t mirror a unfavourable evaluation of the standard of its enterprise.

SA contributor The Worth Pendulum charges Enphase (ENPH) Maintain because the inventory’s valuation multiples are a lot greater than friends, however “that is justified contemplating expectations of quicker high line development and better margins”.

Shares of Enphase (ENPH) gained 36% YTD, outperforming the S&P 500 index by a really broad margin.

Q2 recap:

• Enphase (ENPH) inventory rallied after an enormous Q2 earnings beat, pushed by robust demand for Enphase Power Techniques. The agency guided for Q3 income of $590M-$630M, which incorporates shipments of 130-145 MWh of Enphase IQ batteries.
• The robust present led to a number of analysts elevating their value targets on Enphase (ENPH).
• Credit score Suisse upgraded the agency on robust execution amid provide chain points, and because it delivered on IQ8 premium pricing/margins.