Shares of Enphase Energy Inc. surged over 14% in after-hours trading on Tuesday as the alternative-energy company presented investors with a quarterly report that addressed immediate concerns within the sector.
Financial Performance
In the fourth quarter of 2023, Enphase reported earnings of $21 million, or 15 cents per share, compared to $154 million, or $1.06 per share, in the same quarter of the previous year. After adjusting for one-time items, the company’s earnings came in at 54 cents per share. However, revenue saw a steep decline of 58%, amounting to $302.6 million, down from $724.6 million the previous year.
Analyst Expectations
According to a FactSet poll, analysts had anticipated adjusted earnings of 55 cents per share on revenue of $328 million. Despite falling slightly short of these expectations, investors seemed to focus on the bigger picture.
Investor Confidence
“On first read, we see this as a ‘good-enough’ release with few surprises that should ultimately provide investors incremental confidence in the go-forward trajectory,” commented Truist Securities analyst Jordan Levy in a note.
Market Performance
At the end of the regular trading day, Enphase shares inched up by 2.8%. Over the past 12 months, however, the stock has experienced a significant decline of 55%, in contrast to the 20% gains observed by the S&P 500 index SPX.
Enphase Energy Inc.’s quarterly report offers a glimmer of hope for the ailing alternative-energy sector, positively impacting investor sentiment moving forward.
