Home energy technology company Enphase (NASDAQ:ENPH) will be reporting earnings tomorrow after the bell. Here’s what investors should know.
Enphase missed analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $303.5 million, down 57.3% year on year. It was a softer quarter for the company, with a miss of analysts’ earnings and volume estimates.
Is Enphase a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Enphase’s revenue to decline 28.6% year on year to $393.6 million, a further deceleration from the 13.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.78 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Enphase has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Enphase’s peers in the electrical equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Acuity Brands delivered year-on-year revenue growth of 2.2%, meeting analysts’ expectations, and Badger Meter reported revenues up 11.9%, falling short of estimates by 1.8%. Acuity Brands traded up 9% following the results while Badger Meter was down 5.4%.
Read our full analysis of Acuity Brands’s results here and Badger Meter’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 3.3% on average over the last month. Enphase is down 21.9% during the same time and is heading into earnings with an average analyst price target of $124.29 (compared to the current share price of $91.35).
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