- Enphase Energy beat earnings forecats by 24%.
- ENPH shares are up about 24% as well.
- Enphase stock needs to get above $191 to sustain a rally.
Enphase Energy (ENPH) stock keeps charging higher in Wednesday's premarket after the solar energy company bested adjusted earnings per share by 24% for the fourth quarter of 2021. The maker of residential-leading solar inverters and monitoring devices reported adjusted EPS of $0.73 compared with forecasts for $0.59. Revenue also came in at $412 million, about 3% above the forecast average. ENPH shares have rallied an impressive 24.7% in Wednesday's premarket to $180.
Enphase Energy Stock News: great guidance gets the Street's nod
Investors also seem impressed by Enphase's guidance. Adjusted gross margins in Q4 were 40.2%, and management said they would remain between 38% and 41% for Q1 2022. Additionally, management said revenues between $420 million and $440 million were expected, which was more optimistic than Wall Street consensus of $424 million.
“Total revenue increased 17%, compared to the third quarter of 2021. We were able to meet the surge in customer demand while successfully navigating supply constraints and logistics challenges," CEO Badri Kothandaraman said in a press release.
ENPH key statistics
| Market Cap | $19 billion |
| Price/Earnings | 60 |
| Price/Sales | 15 |
| Price/Book | 30 |
| Enterprise Value | $18.6 billion |
| Operating Margin | 20% |
| Profit Margin |
13% |
| 52-week high | $282.46 |
| 52-week low | $108.88 |
| Short Interest | 1% |
| Average Wall Street Rating and Price Target | Buy, $221.50 |
Enphase Energy Forecast: one growth stock ignoring the macro
ENPH stock could care less about the macro environment of high inflation and rising interest rates. It is one of the few beaten down growth stock of the past two years that seems to be recoving with Wednesday's bounce. The 9-day moving average usurped the 21-day moving average on Wednesday, so it does appear this rally might have legs to it.
Though the stock was up 24% in the premarket, it needs to close above $191 to sustain a further rally. $191 acted as resistance on October 19, 2021, and during the last week of that year. Support sits at $144.
ENPH 1-day chart
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