Enphase Energy to Release Q1 Financial Data and Potential Catalysts

 Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company, delivers smart, easy-to-use solutions that connect solar generation, storage, and management on one intelligent platform. The Company revolutionized solar with its microinverter technology and produces the world’s only truly integrated solar plus storage solution. Enphase has shipped more than 19 million micro inverters, and over 855,000 Enphase systems have been deployed in more than 125 countries.

The company reported a solid fourth quarter for 2018, Enphase reported revenue of $92.3 million. The company had a strong customer demand as its financial strength and robust balance sheet reaffirmed customer confidence. ENPH’ most significant challenge in Q4 was meetings this additional demand due to component shortages that constrained its revenue. Enphase continues to remain fully booked for Q1 2019 and beyond, just as it saw in Q4 2018.

From a liquidity and financial flexibility standpoint, ENPH exited the fourth quarter with a cash balance of $106.2 million net of a $10 million final payment to SunPower. The strong cash balance also enabled the company to repay on January 28, 2019, completely, its high interest bearing senior secured term loan of approximately $39.5 million plus accrued interest and fees.

Recent achievements and catalysts:

  • On April 15th, the company announced that over 2,500 homeowners had joined the Enphase Upgrade Program, a service program that gives homeowners several options for upgrading to the latest, more efficient and reliable microinverters from Enphase. This program is for warranty holders of legacy Enphase microinverters and represents the company’s continued commitment to quality and service. Participation in the Enphase Upgrade Program is entirely voluntary, and Enphase continues to stand by the warranties for products in the field.
  • On April 8th, the company announced that it has entered into a multi-year supply agreement with Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) for its power transistors developed using CoolMOS™ C7 Gold (G7) super junction MOSFET technology. The agreement is expected to provide Enphase with an increased supply of high-voltage power transistors starting in the second half of 2019.
  • The high demand for power transistors from the electric vehicle (EV) industry has created industry-wide shortages, impacting Enphase’s revenue and gross margin in the past two quarters. With this agreement, Enphase now has access to a dedicated source for 600 V power transistors, backed by a very efficient supply chain.
  • On April 3rd, the company announced that it has released its updated Enphase AC Battery (ACB) with a new battery cell supplier and improved Time-Of-Use (TOU) software for customers in Australia, New Zealand and Europe.
  • Now that ENPH is financially stable a large portion of the management’ time is spent on profitable top line growth. The management’ plan to achieve this growth is through differentiated products and services. ENPH’ four levers for profitably top line growth remain IQ7 regional expansion, high power and high-performance products, AC modules and Ensemble Solar and Storage technology.

Upcoming presentation/Catalyst: The Company would host a conference call and webcast on Tuesday, April 30, 2019 at 4:30 p.m. Eastern Time to discuss its first quarter 2019 financial results for the period ended March 31, 2019.

Analyst views and brokerage actions: Per www.marketbeat.com, There are currently one sell rating, two hold ratings and 5 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Below are the excerpts of recent ratings by brokerage house:

Enphase Energy Management System

4th Quarter Financial Summary: (In thousands, except per share data and percentage)

Revenue and Profitability: The company’ fourth quarter revenue was $92.3 million, an increase of 18% sequentially and an increase of 16% year-over year. Enphase shipped 257 megawatts DC, or approximately 820,000 microinverters.

Its non-GAAP gross margin was 30.7%, a decrease of 210 basis points from 32.8% in the third quarter. The non-GAAP gross margin was negatively impacted by 4.3%, due to expediting fees related to component shortages. The expedite fees were in the form of air shipments that the company chose to make in order to service its customers. Non-GAAP operating expenses were $19.7 million, compared to $18.6 million in the prior quarter. 

Liquidity and financial flexibility:  The company exited the fourth quarter with $106.2 million in cash, net of a $10 million final payment to SunPower. Inventory was $16.3 million in the fourth quarter, compared to $17.9 million in the third quarter and $26.0 million in the fourth quarter of 2017.

Outlook: For the first quarter of 2019, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:

  • Revenue to be within a range of $90.0 million to $95.0 million
  • GAAP and non-GAAP gross margin to be within a range of 31% to 34%
  • GAAP operating expenses to be within a range of $25.0 million to $26.0 million, including a total of approximately $4.5 million estimated for stock-based compensation expenses, additional restructuring expenses and acquisition related expenses and amortization
  • Non-GAAP operating expenses to be within a range of $20.5 million to $21.5 million, excluding a total of approximately $4.5 million estimated for stock-based compensation expenses, additional restructuring expenses and acquisition related expenses and amortization

Upcoming results: The Company would host a conference call and webcast on Tuesday, April 30, 2019 at 4:30 p.m. Eastern Time to discuss its first quarter 2019 financial results for the period ended March 31, 2019.

Key risk factors and potential stock drivers:

  • The upcoming results (to be announced on 30th April 2019) would be a significant near-term catalyst for the company. 
  • The company’ business risk profile would continue to remain constrained due to the competition and regulated nature of the industry which could restrict its growth and margins to a certain extent.
  • Company’ ability to grow its market share and or enter new geographies, expand product offerings and or extend technological innovations would continue to remain a key catalyst over the medium to longer term.
  • The stock performance can improve significantly if substantial growth in revenue and profitability strengthen the financial risk profile and overall debt metrics of the company.
  • The company’ revenue and operating results for solar energy solutions are difficult to predict and have, in the past, and may, in the future, fluctuate from quarter to quarter as a result of changes in state, federal, or private utility company subsidies, as well as weather, economic trends, shortage of inputs and other factors.
  • The markets for the company’ products are highly competitive, and Enphase competes with several traditional inverter manufacturers and new technology start-ups.

Stock Chart:


  • On Friday, April 26th, 2019, ENPH closed at $10.43 (Up by 5.25%), with a substantial volume of 4.4 million shares exchanging hands. Market capitalization is $1.151 billion. The current RSI is trending at 65.06
  • In the past 52 weeks, shares of ENPH have traded as low as $3.70 and as high as $10.47
  • At $10.43, shares of ENPH are trading above its 50-day moving average (MA) at $9.07 and above its 200-day moving average (MA) at $6.36.
  • The present support and resistance levels for the stock are at $9.70 & $10.84 respectively. 


Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.

Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.

This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.

We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.

When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.

17B Disclosure

Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.

PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.

Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.

TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.

The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.

Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.