Enphase Energy, Inc. (ENPH) Stock Steeply Rising After Tremendous Results for FY2021

Enphase Energy, Inc. (ENPH), a company that manufactures home energy solutions for the solar photovoltaic industry, has climbed by 16.47% in aftermarket trading sessions and as a result, is trading at $168.3 at the time of the writing. On Tuesday, the stock gained an increase of 2.65% during the regular trading session and closed the day at $144.5. The potential reason for the surge in the aftermarket is the announcement of quarterly results.

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ENPH FY2021 Results

On Tuesday, after the market hours came to an end, ENPH announced the results for the Fiscal year 2021. The year ended on 31st December 2021. The net revenue for the year 2021 was $1.3 billion against $0.7 billion for the fiscal year 2020. The total operating expenses for the year were $338 million against $159 million for 2020. The net income generated by Enphase for the 12 months was $145 million (or basic and diluted EPS of $1.09 and $1.02 respectively) against net income of $133 million (or basic and diluted EPS of $1.07 and $0.95 respectively) for fiscal 2020.

Q4 2021 Results

Alongside, ENPH also announced the results for Q4 2021. The company generated net revenue of $412 million against $351 million for Q4 2020. The gross profit for the three months was $163 million against $140 million for the same three-month period of FY 2020. The net income generated for the said period was $52 million (or basic and diluted EPS of $0.39 and $0.37) against $21 million (or $0.16 and $0.15) for the fiscal year 2020.

Outlook for Q1 2022

ENPH also provided the financial outlook for Q1 2022. The company expects the revenue to stand between $420 and $440 million during the quarter. The expected GAAP gross margin is expected to lie in the range of 37 to 40%, while the GAAP operating expenses are estimated to fall between $130.5 and $133.5 million. With regards to non-GAAP metrics, the company expects the non-GAAP operating expenses to remain between $67.5 and $70.5 million during Q1 2022.

What’s Next for ENPH?

During the last three months, ENPH stock has declined by approximately 40%. However, the recent stats are providing an optimistic outlook for the stock. Looking ahead, the analysts are of the view that even though the stock holds several positive signals at this point of time, still they are not enough for it to be considered as a buy candidate.

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