Enphase Energy Reports Strong Q4 Earnings, Shares Rise 19%
Enphase Energy, a leading energy technology company, exceeded analysts' expectations with its fourth-quarter earnings per share. As a result, the company's shares rose by a significant 19% to $119.19.
Fourth Quarter Financial Performance
Enphase reported quarterly earnings of $20.9 million, or 15 cents a share. This is a decrease from the earnings of $153.6 million, or 54 cents a share, in the same quarter last year. However, it still surpassed analyst estimates, as they were expecting earnings of $30.6 million, or 12 cents a share.
The company's revenue for the quarter stood at $302.6 million, lower than last year's $724.7 million but still above analysts' expectations of $328.3 million.
Adjusted earnings for the quarter came in at 54 cents per share, slightly lower than the forecasted 55 cents per share.
Decline in European Revenue
Enphase experienced a significant decline of approximately 70% in its revenue from Europe compared to the previous quarter. The decrease was primarily attributed to reduced shipments as a result of high inventory levels at distribution partners and a softening of demand.
Outlook for the First Quarter
Looking ahead, Enphase forecasts revenue between $260 million and $300 million for the first quarter. Analysts have a slightly more optimistic view, with revenue estimates of $296 million.
Analyst Ratings and Price Targets
BMO Capital raised its price target for Enphase shares to $110 from $106 while maintaining its Market Perform rating. On the other hand, Oppenheimer upgraded its rating for Enphase stock to Outperform from Perform and set a price target of $133 per share.
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