Enphase Energy rallies after Q1 beat; 'tripling down' on Europe spending
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Enphase Energy (NASDAQ:ENPH) +8.2% pre-market on Wednesday after reporting better than expected Q1 adjusted earnings as revenues rose 46% Y/Y to a quarterly record $441M.
Enphase (ENPH) also provided optimistic guidance for the current quarter, forecasting revenues of $490M-$520M, above $475M analyst consensus estimate, with adjusted gross margin 38%-41% and GAAP gross margin 37%-40%.
Q1 gross margin was 40.1%, up from 39.6% in Q4 2021, as Enphase (ENPH) raised prices in Q1 after also hiking prices last fall in an effort to counter rising raw material costs.
"The situation regarding component availability is obviously much better than what it was last year... we have learned how to mitigate our risk," CEO Badri Kothandaraman said on the company's earnings conference call. "I cannot predict what's going to happen tomorrow, but I can say right now our situation is quite stable."
The U.S. accounted for 84% of the company's revenue during Q1, but the company is "tripling down on Europe in terms of spending... We expect our momentum in Europe to continue with more than 40% sequential revenue growth expected in Q2 vs. Q1," Kothandaraman said on the call.
The U.S. government's investigation of solar panel imports creates "massive uncertainty" in the marketplace and will lead to lost U.S. jobs, higher power prices for consumers, and more imports from China, the CEO also said.
Enphase Energy (ENPH) shares have shed 16% YTD and 11% during the past year.