A Preview Of Enphase Energy's Earnings

Enphase Energy ENPH is set to give its latest quarterly earnings report on Tuesday, 2024-10-22. Here's what investors need to know before the announcement.

Analysts estimate that Enphase Energy will report an earnings per share (EPS) of $0.77.

The market awaits Enphase Energy's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

During the last quarter, the company reported an EPS missed by $0.05, leading to a 12.8% increase in the share price on the subsequent day.

Here's a look at Enphase Energy's past performance and the resulting price change:

Tracking Enphase Energy's Stock Performance

Shares of Enphase Energy were trading at $91.64 as of October 18. Over the last 52-week period, shares are down 3.85%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Insights Shared by Analysts on Enphase Energy

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Enphase Energy.

A total of 19 analyst ratings have been received for Enphase Energy, with the consensus rating being Neutral. The average one-year price target stands at $112.53, suggesting a potential 22.8% upside.

Analyzing Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Onto Innovation, Entegris and Amkor Tech, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• As per analysts' assessments, Onto Innovation is favoring an Outperform trajectory, with an average 1-year price target of $255.0, suggesting a potential 178.26% upside.
• Analysts currently favor an Buy trajectory for Entegris, with an average 1-year price target of $143.83, suggesting a potential 56.95% upside.
• The prevailing sentiment among analysts is an Buy trajectory for Amkor Tech, with an average 1-year price target of $41.5, implying a potential 54.71% downside.

Analysis Summary for Peers

The peer analysis summary provides a snapshot of key metrics for Onto Innovation, Entegris and Amkor Tech, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Enphase Energy ranks at the top for Gross Profit and Return on Equity among its peers. However, it ranks at the bottom for Revenue Growth. Overall, Enphase Energy is positioned well compared to its peers in terms of financial performance metrics.

Unveiling the Story Behind Enphase Energy

Enphase Energy is a global energy technology company. The company delivers smart, easy-to-use solutions that manage solar generation, storage, and communication on one platform. The company's microinverter technology primarily serves the rooftop solar market and produces a fully integrated solar-plus-storage solution. Geographically, it derives a majority of revenue from the United States.

Understanding the Numbers: Enphase Energy's Finances

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Enphase Energy's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -57.33%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Enphase Energy's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 3.57%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Enphase Energy's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.2%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Enphase Energy's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.34%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Enphase Energy's debt-to-equity ratio stands notably higher than the industry average, reaching 1.47. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Enphase Energy visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.