If you want a fairly accurate gauge of how the global solar industry is faring this year, just take a look at Enphase Energy (NASDAQ:ENPH). The company just released Street-beating quarterly financial results, indicating notable revenue expansion in the E.U. It’s justifiable, then, that ENPH stock made a swift move higher this morning.
Based in California, Enphase Energy sells semiconductor-based microinverters used in residential solar energy systems. It’s a midsize company, but is one of the more prominent players in the solar equipment manufacturing space.
It’s fair to say if Enphase is doing well, then the global solar market is probably expanding. Thus, it’s encouraging to learn that Enphase Energy’s third-quarter 2022 fiscal results exceeded analysts’ top- and bottom-line expectations.
To be more specific, Enphase’s quarterly revenue of $634.7 million exceeded Wall Street’s estimate of $617 million. Meanwhile, the company’s Q3 2022 adjusted earnings of $1.25 per share easily beat the analyst consensus estimate of 77 cents.
What’s Happening with ENPH Stock?
In case anyone was wondering if ENPH stock would break through the $300 resistance level soon, they definitely got their answer today. This morning, the shares rallied 13% and broke slightly above $300.
There still might be room to run, as Enphase’s big beats may entice more traders into the fold. Moreover, Enphase Energy proved an important point in Q3: It’s truly a global company, just as the solar movement is a multinational phenomenon.
President and CEO Badri Kothandaraman drove the point home in his statement pertaining to Enphase Energy’s third-quarter results. He observed Enphase’s revenue in Europe grew approximately 70% year-over-year during the quarter “as countries in the region are accelerating their efforts to address rising energy prices and reliance on fossil fuels.”
Kothandaraman’s argument is compelling here. Among others, Enphase Energy has arrangements in place with Netherlands-based Gaslicht and Germany-based Energiekonzepte Deutschland GmbH.
So, you never really know where you might see Enphase Energy next. The company is expanding into Europe and the U.S. today, and perhaps other geographies in the near future. It’s exciting to consider the possibilities — and ENPH stock traders are certainly excited to book their substantial gains today.
On the date of publication, David Moadel 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.