The US micro-inverter producer issued robust steerage for Q3 as its revenues and earnings per share beat estimates.
From pv magazine USA
Enphase Power, a number one supplier of photo voltaic microinverters and battery vitality storage, introduced document revenues in Q2 2022, beating expectations and rapidly sending the corporate’s refill 10% in after-hours buying and selling.
The consensus for Enphase was $508 million in revenues and 85 cents per share. The Fremont, California-based firm beat these numbers handily, posting 102% earnings per share development at $1.07, and income development of 67% with $530 million in revenues posted.
The expansion was closely influenced by speedy enlargement within the European market, with second quarter development of 69%. It was additionally supported by robust efficiency within the US market and the success of its IQ8 microinverter, which ROTH Capital Companions mentioned has a 15% premium over the earlier IQ7 mannequin.
As of the top of 2021, Enphase has shipped 43.4 TWh of microinverters, representing over 42 million microinverter items, deployed throughout almost 2 million photo voltaic initiatives. That quantity continues to develop, supported by robust curiosity within the IQ8 inverter, which might kind a microgrid with a house photo voltaic array and no vitality storage.
The IQ8 is a novel expertise for its means to maintain the facility operating throughout a grid blackout with out the necessity for vitality storage or a generator. The gadget can react to real-time utilization within the house and regulate accordingly. The system will feed as a lot electrical energy because it has entry to based mostly upon daylight accessible and solar energy capability, and it’ll regulate on the fly. When an excessive amount of vitality from the home is being pulled – greater than daylight and put in capability may present – the entire system shuts down, solely to immediately restart when the surplus load is eliminated. This characteristic could also be more and more in style as energy outages proceed to rise, significantly throughout the western United States.
Wanting forward, the corporate issued very upbeat steerage for Q3 revenues, anticipating between $590 million to $630 million. Enphase’s microinverter gross sales are anticipated to proceed to carry the lion’s share of revenues within the close to time period.
Its vitality storage section lags some expectations because it mentioned it estimates it is going to ship 130 to 145 MWh of battery vitality storage in Q3 2022, barely decrease than ROTH’s earlier estimate of 156 MWh. The corporate additionally operates within the EV charging section and shipped 8,250 ClipperCreek/Enphase chargers to US prospects. It mentioned it expects wholesome development on this section.
ROTH reissued its purchase score on the inventory following the quarterly name and raised its 12-month value goal from $270 to $310.
ROTH mentioned components that will gradual Enphase on the progress in the direction of its value goal embody decrease than anticipated PV demand, surprising lower in inverter pricing or gross margins, an absence of obtainable challenge financing for residential and industrial PV initiatives, or the accelerated adoption of aggressive applied sciences like DC energy optimizers.
The agency mentioned Enphase trades at an elevated valuation as a result of its distinctive place because the globally dominant microinverter supplier, with near 100% market share of microinverters.