Enphase Energy
This red-hot company may be poised to deliver a first-quarter earnings beat. Enphase Energy Inc. (NASDAQ: ENPH) designs, develops, manufactures and sells home energy solutions for the solar photovoltaic industry in the United States and internationally.
The company offers semiconductor-based microinverters, which convert energy at the individual solar module level and combine with its proprietary networking and software technologies to provide energy monitoring and control services. It also offers AC battery storage systems; Envoy communications gateway; Enlighten cloud-based monitoring service; an IQ gateway; IQ batteries; the cloud-based Enlighten monitoring service; storage solutions; electric vehicle charging solutions; and design, proposal, permitting and lead-generation services.
Enphase Energy sells its solutions to solar distributors and directly to large installers, original equipment manufacturers, strategic partners and homeowners, as well as directly to the do-it-yourself market through its legacy product upgrade program or online store.
Goldman Sachs noted this when discussing the potential IRA benefits for the company:
Enphase estimated that the net benefit of microinverter manufacturing tax credits would be roughly $20-$30 per microinverter, or roughly $300 million-$400 million of annualized net benefit based on our estimation. US manufacturing will begin in 2Q23, with more lines becoming operational in 3Q23. Therefore, the company may not begin to materially realize manufacturing credits until 3Q23, in which case the company may not be in a position to provide financial guidance on IRA credits until the 2Q23 earnings call.
Goldman Sachs has a $295 price target, and the consensus target for Enphase Energy stock is $289.83. Wednesday’s closing share price was $224.27.
First Solar
While maybe not poised to beat results this quarter, this is one of the best-positioned companies in the industry and could supply a full-year earnings brat. First Solar Inc. (NASDAQ: FSLR) provides photovoltaic (PV) solar energy solutions in the United States, Canada, France, Japan, India and elsewhere.
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