On Wednesday morning, shares of Enphase Energy Inc. (ENPH) were up 14.3% or $5.73 a share. Year over year, shares of the solar stock are now up more than 550% from a 2019 low.
Enphase Energy, Inc. designs, develops, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter that converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It sells its solutions primarily to distributors, as well as directly to large installers, original equipment manufacturers, strategic partners, and homeowners.
The stock is up following very strong Q4 earnings, revenue, and guidance.
Q4 revenues were up 17% quarter over quarter, and 128% year over year to $210M. Its non-GAAP gross margin was 37.3%, up from 36.2% in Q3 and 30.7% in the year-ago quarter. It also generated $102.3 million in cash flow from operations, ending the year with $296.1 million in cash. ENPH then issued upside revenue guidance of $200 million to $210 million, as compared to analyst expectations for $174 million.
In addition, as we noted the other day, ENPH expanded its new-home solar initiative so that residential home developers, solar installers and new-home buyers can all benefit from the high level of design flexibility, reliability, and expandability of Enphase solar and storage products, as noted in the company’s press release.
“We are excited that residential developers and solar installers are using our fundamental design principles to offer homebuyers the option to easily add more solar or storage to their new homes,” said Dave Ranhoff, chief commercial officer at Enphase Energy. “The modular, plug-and-play design of Enphase home energy products also give developers in California the freedom to tailor home energy systems to meet the expectations of their target homebuyers and comply with the state’s new home solar mandate.”
Ian Cooper’s Personal Position in ENPH: None