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Enphase Energy (ENPH) Stock Gets Boost From Strong Q2 Earnings Report

  • Shares of solar energy specialist Enphase Energy (ENPH) stock are up 18% in late-morning trading.
  • The company beat expectations for the top and bottom lines for the second quarter.
  • As climate change remains top of mind, ENPH stock stands to benefit.
ENPH stock - Enphase Energy (ENPH) Stock Gets Boost From Strong Q2 Earnings Report

Source: IgorGolovniov / Shutterstock.com

Long relevant for its ability to facilitate savings, the shifting conditions associated with climate change may continue to undergird solar energy specialist Enphase Energy (NASDAQ:ENPH). ENPH stock is up 18% heading into the afternoon session on strong results associated with the company’s Q2 2022 earnings report. Beating expectations for the top and bottom lines, Enphase is one of the rare companies with an encouraging outlook this year.

Specifically developing microinverters, battery storage systems and energy generation monitoring software, Enphase is indeed a company to watch. In Q2, it delivered earnings per share (EPS) of $1.07. This beat the consensus estimate of 83 cents. Furthermore, the latest tally compares very favorably to the EPS of 53 cents posted in the year-ago quarter. Per Zacks Equity Research, Enphase surpassed consensus EPS estimates four times over the last four quarters.

On the revenue front, the company rang up sales of $530.2 million, beating out the consensus target by nearly 4.7%. The latest haul compares favorably to Q2 2021’s result, which saw sales of a little over $316 million. Like the earnings trend, Enphase has beat out consensus revenue estimates four times over the past four quarters.

Notably, ENPH stock is up about 38.5% on a year-to-date (YTD) basis. This compares very favorably to the benchmark S&P 500 index, which has gained 17% during the same period. Further, the brewing impact of climate change may help bolster shares well into the future.

ENPH Stock and Climate Change

Despite the economic and geopolitical turmoil of 2022, ENPH stock continues to rise higher. With the impact of climate change apparently worsening, going solar may be one of the best mechanisms for mitigating the paradigm shift.

According to an AP report in September 2021, solar energy “has the potential to supply up to 40% of the nation’s electricity within 15 years.” Should such a ramp up occur, the development would have enormous implications for ENPH stock. Logically, President Joe Biden’s push for green energy solutions would present a net benefit for Enphase and its peers.

Of course, this is an ambitious target. It would require a quadrupling of annual solar capacity — along with continual year-by-year increases — per the Energy Department’s Office of Energy Efficiency and Renewable Energy. Still, with recent climate-related events in focus, there may be more interest for such infrastructural commitments. This bodes well for ENPH stock.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.


Article printed from InvestorPlace Media, https://investorplace.com/2022/07/enphase-energy-enph-stock-gets-q2-earnings-boost/.

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