Shares of Enphase Energy soared Wednesday after the solar energy player reported third-quarter results that flew past estimates on the top and bottom lines. Gains on Enphase stock helped lift the fortunes of other solar companies.
Enphase reported adjusted earnings of $1.25 a share on revenue of $634.7 million. Wall Street expected Enphase to report earnings of $1.09 a share on revenue of $530.2 million. Revenue climbed 20% from the year-ago period.
Enphase stock surged 9.9% to close at 291.87 on the stock market today.
"ENPH delivered a solid top and bottom-line beat," Needham analyst Vikram Bagri said in a note to clients. Bagri raised his price target on Enphase stock to 335, from 275, with a rating of buy.
Other Solar Companies Get A Lift
The news seemed to boost the stocks of other solar companies. First Solar, which reports earnings Thursday, jumped more than 3%. Meanwhile, Daqo New Energy surged more than 7%. And Canadian Solar climbed more than 4%.
As the top-ranked company in a highly ranked group, Enphase is a leading provider of solar microinverters. Microinverters boost solar energy production, improve reliability in solar energy systems and support intelligent energy management.
Enphase also makes software to monitor energy generation and battery systems. The company focuses primarily on residential markets.
For its fourth quarter, Enphase expects revenue in the range of $680 million to $720 million. The midpoint of $700 million is above estimates of $655 million.
Enphase Stock: Demand Strong Worldwide
"Demand was strong in our markets worldwide, particularly in North America and Europe," the company said in its press release.
"Our revenue in Europe for the third quarter of 2022 increased approximately 70%, compared to the second quarter of 2022, as countries in the region are accelerating their efforts to address rising energy prices and reliance on fossil fuel," the company went on to say.
Enphase stock is up 47% this year.
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