Enphase Energy Surpasses Q4 Estimates, Provides Bullish Q1 Outlook
Solar inverter manufacturer Enphase Energy (ENPH) exceeded Wall Street expectations with its fourth-quarter operating profit and provided an optimistic revenue forecast for the first quarter.
Robust Demand Drives Q4 Results
Enphase reported a solid fourth-quarter, buoyed by strong demand for its products. Adjusted net operating income surged to $120.4 million, surpassing analysts' estimates of $100.4 million.
Q1 Revenue Guidance Tops Expectations
The company anticipates first-quarter revenue between $340 million and $380 million, outpacing analysts' consensus of $338.5 million. This forecast includes shipments of IQ Batteries for excess solar energy storage, as well as $50 million in safe harbor revenue.
Market Sentiment Mixed
Enphase shares initially rose about 6% in after-hours trading. However, analysts expressed caution about the company's inclusion of safe harbor revenue in its Q1 guidance, which may raise concerns among investors.
Strong Performance in Key Market
In the United States, Enphase's largest market, revenue increased 6% sequentially due to higher microinverter sales. The company's Fremont, California headquarters continues to drive growth.