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Enphase forecasts Q1 revenue above expectations, shares rise
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Enphase forecasts Q1 revenue above expectations, shares rise
Feb 4, 2025 7:41 PM

(Reuters) -Solar inverter maker Enphase Energy forecast first-quarter revenue above market estimates on Tuesday, after robust demand helped it post a better-than-expected fourth-quarter operating profit, sending its shares up about 6% after the bell.

The solar energy company forecast first-quarter revenue to be in the range of $340 million to $380 million, compared with analysts' expectations of $338.5 million, according to data compiled by LSEG.

The company said the forecast included shipments of 150-170 megawatt hours of IQ Batteries, which are used to store excess solar energy for later use, as well as about $50 million of safe harbor revenue, which is any sales made to customers who plan to install the inventory over more than one year.

"Stock was up in after-market, but this (inclusion of 'safe harbor' revenue in Q1 guide) may be frowned upon as the Street fully digests it," GLJ Research LLC analyst Gordon L. Johnson said in a note.

In the U.S., Enphase's biggest market, revenue rose 6% sequentially due to higher microinverter sales in the quarter.

The Fremont, California-based company's adjusted net operating income was $120.4 million for the quarter ending Dec. 31, ahead of analysts' average estimate of $100.4 million, according to data compiled by LSEG.

Enphase Energy is planning to move its battery cell manufacturing out of China to avoid tariffs imposed by U.S. President Donald Trump, Bloomberg News reported on Tuesday.

"We need to be making cell packs outside of China and that's what we are going to be focusing on the next year," CEO Badri Kothandaraman said in an interview with Bloomberg News, without specifying where the company would move its operations.

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