Enphase Energy, Inc. Reports Third Quarter 2024 Financial Results
FREMONT, Calif., Oct. 22, 2024 – Enphase Energy, Inc. (NASDAQ: ENPH), a leading global energy technology company specializing in solar and battery systems, announced its financial results for the third quarter of 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | QoQ Change | Consensus Estimates (Q3) |
|---|---|---|---|---|
| Total Revenue | $380.9 million | $303.5 million | +25.5% | $392.11 million |
| GAAP Earnings Per Share | $0.33 | Not Provided | Not Provided | $0.77 |
| Non-GAAP Earnings Per Share | $0.65 | Not Provided | Not Provided | Not Provided |
| Non-GAAP Gross Margin (with IRA) | 48.1% | 47.1% | +1.0 percentage points | Not Provided |
| Free Cash Flow | $161.6 million | Not Provided | Not Provided | Not Provided |
Financial Interpretation: Enphase's total revenue for Q3 2024 was slightly below consensus estimates, coming in at $380.9 million against an estimated $392.11 million. The company achieved a 25.5% increase in revenue quarter-over-quarter, driven by a 43% revenue rise in the U.S. due to enhanced distributor shipments. Despite the growth in revenue and non-GAAP gross margin, GAAP EPS of $0.33 fell short of the consensus estimate of $0.77, potentially contributing to the stock's post-earnings decline.
Segment Revenue Performance
| Region | Q3 2024 Revenue Change |
|---|---|
| United States | +43% |
| Europe | -15% |
Segment Performance Interpretation: The increase in U.S. revenue reflects a strong recovery in distributor stock levels, while the decline in European revenue highlights continued softening demand across the region.
Key Developments and Operational Highlights
- Shipped 1,731,768 microinverters and 172.9 megawatt-hours of IQ® Batteries.
- Launched an AI-based software solution to optimize energy use by integrating solar and consumption forecasting.
- Expanded product shipments and support for grid services programs in multiple geographic regions.
Executive Comments
CEO Badri Kothandaraman emphasized the company's strategic focus on product innovation and expansion in key markets. He highlighted the launch of new products, including the IQ Battery 5P and IQ8 Microinverters, and the expansion of Enphase's support for grid services programs in several U.S. states, showcasing the company's commitment to innovation and customer-centric solutions.
Dividends and Share Repurchase Program
Enphase repurchased 434,947 shares at an average price of $114.48 per share, totaling approximately $49.8 million.
Forward Guidance
For Q4 2024, Enphase expects revenue to range between $360.0 million and $400.0 million and provides guidance for gross margins and operating expenses, with continued focus on higher domestic content production expected to drive tax credits through IRA benefits.
Stock Price Movement
Following the earnings release, Enphase's stock experienced a decline of approximately 4.93%.
These results and strategic initiatives position Enphase well for future growth, despite current challenges in certain international markets.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
