Enphase Energy Earnings: Here’s Why the Stock is Falling Now

Enphase Energy (NASDAQ:ENPH) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 9.24%.

Enphase Energy Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.12 in the quarter versus EPS of $-0.19 in the year-earlier quarter.

Revenue: Rose 4.49% to $58.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Enphase Energy reported adjusted EPS loss of $0.12 per share. By that measure, the company beat the mean analyst estimate of $-0.13. It missed the average revenue estimate of $58.86 million.

Quoting Management: “Our second quarter financial results provide tangible evidence of the progress we are making in the execution of our key initiatives,” commented Paul Nahi, CEO of Enphase. “Once again, we improved our gross margins posting a Company record 28.1%, while continuing to maintain tight control over operating expenses, which we kept flat for the third consecutive quarter. We also made great strides in improving cash flow from operations.”

Key Stats (on next page)…

Revenue increased 27.69% from $45.58 million in the previous quarter. EPS increased to $-0.12 in the quarter versus EPS of $-0.21 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.01 to $0. For the current year, the average estimate has moved up from a loss of $0.28 to a loss of $0.26 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)