Enphase Energy Q4 Earnings Preview: Stronger Performance Or Another Miss Ahead?

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Enphase Energy, Inc. ENPH is set to report its fourth-quarter financial results on Tuesday after the closing bell. Here's a preview of what the Street expects in the report. 

What To Know: Enphase shares dropped 14.9% the day after it reported worse-than-expected Q3 results in October and investors will be hoping for a stronger fourth-quarter performance.

Last quarter, Enphase reported its U.S. revenue increased approximately 43% due to higher shipments to distributors while revenues in Europe fell approximately 15% quarter-over-quarter. 

The company also said in its last report that it expected to begin shipping its commercial microinverters and batteries with higher domestic content in Q4. 

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Investors will be looking for updates on the commercial microinverters and commentary on weakness in the European market, as well as the company’s outlook on potential policy changes under the Trump administration.

Expert Ideas: Enphase Energy stock has a consensus price target of $93.53 based on the ratings of 32 analysts. The high is $147 issued by Mizuho in April 2024 and the Street low price target is $45.82 issued by GLJ Research in June 2024. 

The three most-recent analyst ratings were released by Guggenheim, JPMorgan, and Goldman Sachs in January of this year and have an average price target of $86 between them, implying a 33.18% potential upside for the stock. 

According to estimates from Benzinga Pro, analysts expect Enphase to report quarterly earnings of 72 cents per share and revenue of $377.6 million. It should be noted that the company has missed expectations on the top and bottom lines in each of the last five consecutive quarters. 

Price Action: According to data from Benzinga Pro, Enphase Energy shares are up 4.98% at $65.38 at the time of publication Monday. 

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