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Enphase Energy (NASDAQ:ENPH) is scheduled to report its fourth-quarter earnings on Tuesday, February 6th, after market close.
Analysts expect a year-over-year decline in both the top and bottom lines, with earnings per share of $0.55 on revenues of $327.6 million.
The solar inverter maker is expected to modestly beat market expectations for the fourth-quarter, despite the downturn in the residential solar market. However, the company’s first-quarter guidance is likely to fall short of expectations.
According to analysts at Roth MKM, the U.S. residential solar market could fall 15% in 2024, with U.S. residential installer bankruptcies reaching 500-750.
Investors will be focusing on demand for the company’s products, as it competes with rivals looking to expand market share by slashing prices.
“Focus for ENPH will be on demand, both in the US and internationally and ASPs as its peers look to gain market share by lowering pricing. While we expect demand recovery in the US in 2H24, we expect to hear more commentary from ENPH on the international front,” noted investment firm Jefferies.
In December, the solar equipment maker announced plans to lay off about 10% of its workforce and shift its focus to clearing out excess inventory worldwide.
Over the last three months, the company has seen significant downgrades to its estimates. Its earnings per share estimates have been revised downwards 12 times vs. four upward moves, while its revenue estimates have been revised down six times, compared to two upward revisions.
Seeking Alpha analysts at large consider ENPH a Buy. This compares with average Wall Street rating of Buy and SA Quant rating of Hold.
