Enphase Energy Co., Ltd. (Enf – Free Report) will report its fourth quarter 2022 and full year 2022 results after the closing bell on February 7.
In the last reported quarter, the company achieved an earnings surprise of 16.82%. Enphase Energy averaged 21.76% in its fourth quarter earnings surprise.
Factors to watch out for
Strong microinverter sales growth in the US and Europe could boost Enphase’s overall sales performance in the fourth quarter of 2022.
In Europe, strong demand for microinverters in the Netherlands, France, Germany, Belgium, Spain and Portugal, and demand for IQ batteries in Germany and Belgium, could have fueled ENPH sales in the fourth quarter of 2022. There is a nature. In addition, the introduction of the highly-acclaimed IQ8 microinverter in the Netherlands and France increased revenue from the European region, which may have contributed to the overall revenue performance.
The strength of demand for the Solar Plus storage business in Latin America is likely to continue in the forthcoming quarter. Other regions such as Australia, Brazil and India are also expected to make positive contributions to the overall top line in Q4 2022.
Additionally, ENPH’s fourth quarter sales are expected to benefit from growth in the Enphase installer network and continued adoption of the company’s high-power IQ8 microinverters. Zacks consensus forecast fourth-quarter revenue of $704.9 million, suggesting 70.8% growth from the year-ago quarter.
Increased investment in research and development for customer service and sales is likely to add to overall operating expenses and thus impact the company’s profit margins in the forthcoming quarter. A strong top line from increased volume must have contributed to the company’s earnings in the fourth quarter.
The Zacks consensus estimate for fourth quarter earnings is pegged at $1.28 per share. This represents a 75.3% improvement over the figures reported last year.
What the Zacks model reveals
Our proven model is not a definitive predictor of Enphase Energy’s earnings at this time. A combination of positive earnings ESP and a Zacks rank of 1 (strong buy), 2 (buy), or 3 (hold) increases the likelihood of winning above earnings, which is not the case here.
Revenue ESP: Enphase’s earnings ESP is -6.18%. Earnings ESP filters help you find the best stocks to buy or sell before they’re reported.
Zack Rank: Enphase Energy currently has Zacks Rank #4 (Sell).
you can see See the full list of today’s Zacks #1 ranked stocks here.
Stocks to consider
Below are three companies from the same industry that you might want to consider because they have the right mix of factors to record earnings this season.
Sannova Energy (Nova – Free Report) currently has a Revenue ESP of +21.28% and a Zacks Rank of #3. The Zacks consensus forecast for Sunnova’s fourth quarter sales shows a 127.5% improvement over the figures reported last year.
NOVA boasts a long-term revenue growth rate of 23.16%. The company brought him a negative profit surprise of 92.86%.
Sunrun (Run – Free Report) currently has a Revenue ESP of +711.11% and a Zacks Rank of #3. The Zacks Consensus estimate for fourth-quarter sales is pegged at $581.4 million, suggesting a growth rate of 33.6%.
RUN made an amazing 9700% profit last quarter. Sunrun’s Fourth Quarter Earnings Surprise His 2317.5%.
solar edge (SEDG – Free Report) currently has a Revenue ESP of +11.48% and a Zacks Rank of #2. The Zacks Consensus estimate for SolarEdge’s fourth-quarter earnings is pegged at $1.59, representing a significant improvement of 44.6% from last year’s reported value.
Zacks Consensus forecasts for SolarEdge’s fourth quarter revenue suggest 58.6% year-over-year growth from last year’s reported figures. His four-quarter earnings forecast for SEDG is negative at 22.37%.
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