Enphase Energy (NASDAQ:ENPH) Inc.'s Q3 2023 adjusted earnings were reported at $1.02 per share, marking an 18.4% YoY decrease, consistent with the consensus estimate. The company's GAAP earnings remained steady at 80 cents per share, identical to the same quarter last year. Revenues fell short of the consensus estimate by 1.9%, totaling $551.1 million, a 13.2% YoY decline, and a decrease from the $2796.5 million revenue reported in the last twelve months (LTM2023.Q2) according to InvestingPro data.
During the quarter, Enphase shipped approximately 1,585.6 MW or 3,905,239 microinverters and 86.2 MW hours of Enphase IQ Batteries. The adjusted gross margin expanded by 550 basis points YoY to 48.4%, which aligns with the InvestingPro data showing a gross profit margin of 43.92% in the last twelve months. Adjusted operating expenses saw a rise of 26% YoY to $99 million, while the adjusted operating income was $167.6 million, down by 13.6% YoY. This is in line with the $636.24 million operating income reported by InvestingPro for LTM2023.Q2.
As of September 30, 2023, Enphase held $290.1 million in cash and equivalents compared to $473.2 million as of Dec 31, 2022. Cash flow from operations was recorded at $145.9 million. An InvestingPro Tip reveals that Enphase operates with a high return on assets, which was reported at 19.4% in LTM2023.Q2 by InvestingPro.
Looking ahead to Q4 2023, Enphase anticipates revenues between $300-$350 million and plans to ship between 80 to 100 MW hours of IQ Batteries. Adjusted operating expenses are projected at $85-$89 million, excluding around $57 million for stock-based compensation expenses and acquisition-related costs and amortization. The adjusted gross margin is projected between 48-51%.
In the context of the stock's performance, InvestingPro data shows that the stock has taken a significant hit over the last six months with a -41.42% return, and it is trading near its 52-week low. The stock's previous close was at $94.35, with an InvestingPro fair value of $164.91, suggesting potential for growth.
In related solar industry news, SolarEdge Technologies (NASDAQ:SEDG) is expected to report a 13.9% improvement in Q3 sales and had an earnings surprise of 2.75% in the last quarter. Sunrun (NASDAQ:RUN)'s sales are expected to decline by 11.4%, with a further deterioration in its bottom line. First Solar (NASDAQ:FSLR), Inc.'s revenues are expected to grow by 43.3% despite a negative earnings surprise of 0.94% over the last four quarters.
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