Balance Sheet: Enphase Revenue And Profit Down in Q4 and Full Year 2023 - Share Price Climbs 19 Percent

Fremont, USA - Enphase Energy has presented its figures for the fourth quarter of 2023 (Q4 2023) and the full year 2023.

While revenue on a quarterly basis declined significantly compared to the same period of the previous year, revenue for the full year 2023 will be roughly on a par with the previous year. Net profit in Q4 and in 2023 as a whole is also significantly lower than in the previous year. Nevertheless, the share price climbed by over 19 percent in yesterday's trading.

With USD 302.6 million, Enphase's revenue in Q4 2023 is almost 60 percent lower than in the same quarter of the previous year (Q4 2022: USD 724.7 million). In addition, Enphase missed analysts' estimates, who on average had expected quarterly revenue of USD 328 million. According to Enphase, the decline in sales is primarily the result of reduced deliveries, which is attributable to high inventory levels at distribution partners. In addition, demand continued to weaken in Q4. The Q4 net result on a GAAP basis totalled USD 20.9 million, which is 86 percent lower than in the same quarter of the previous year (Q4 2022: USD 153.8 million). This results in GAAP diluted earnings per share of USD 0.15, compared to USD 0.80 in Q4 2022.

Enphase Energy is reporting sales of USD 2.29 billion for the full year 2023, which corresponds to a slight decrease of 2 percent compared to the previous year (2022: USD 2.33 billion). At USD 438.9 million, net profit on a GAAP basis is around 10 percent higher than in 2022 at USD 397.4 million. This results in an increase of USD 3.08 per diluted share on an annualised basis, compared to USD 2.77 in 2022.

For the first quarter of 2024, Enphase anticipates that revenue will continue to decline and range between USD 260 million and USD 300 million, compared to USD 726 million in the first quarter of 2023. However, Enphase CEO Badri Kothandaraman assumes that this will also be the low point in the first quarter of 2024. According to media reports, Kothandaraman expects development to recover after that, as inventories should then be reduced. Overall, Enphase expects demand to recover and margins to improve over the course of 2024.

Driven by the emerging improvement in the situation on the solar market, the Enphase share went into turbo on Wednesday's trading day and rose by 19.4 percent to a price of EUR 108.82 (closing price, 7 February 2024, Stuttgart Stock Exchange).

Source: IWR Online, 09 Feb 2024