:max_bytes(150000):strip_icc()/GettyImages-2136074452-500b982af2ed4ed091a6380b7e117cb5.jpg "Enphase Energy Sees US Solar Demand Rebounding")
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Key Takeaways
- Enphase Energy indicated that the drop in demand for solar power in the U.S. may be over.
- The solar power equipment maker had a gain in sell-through in the U.S., and said its business in the key California market has stabilized.
- Enphase Energy reported second-quarter profit and sales that missed estimates.
Enphase Energy (ENPH) was the best-performing stock in the S&P 500 Wednesday, a day after the solar power equipment maker suggested the slump in demand in the U.S. is likely over.
Chief Executive Officer (CEO) Badri Kothandaraman told analysts that the sell-through rate of Enphase’s products in the U.S. was up 8% from the first quarter, with the rate higher by 7% in the key state of California. He said that indicates “our California business has stabilized.”
CEO Says Enphase’s Backlog Has Eased
Kothandaraman noted that the company’s backlog has eased. He explained that “we have successfully normalized our channel inventory.” He added that Enphase believes the Federal Reserve will cut interest rates this year, “improving solar economics for the U.S. consumers.”
The news helped offset yet another dismal earnings report from Enphase, which posted an adjusted profit of $0.43 per share, less than a third of what it was a year ago. Revenue sank 57% to $303.5 million. Both were short of estimates.
The company predicted current-quarter revenue would be in the range of $370 million to $410 million, with the midpoint about $4 million below the average estimate of analysts polled by Visible Alpha.
Shares of Enphase Energy soared more than 13% to $117.72 as of 2:15 p.m. ET Wednesday but are down more than 10% so far in 2024.