Enphase Earnings

Enphase (ENPH) reported earnings yesterday after the close. Today, the share price grew by 14%. Given that my portfolio is so heavily weighted with ENPH shares, my entire port increased in value by almost 10%. I am compelled to sell shares just to get below a 60% position size. A nice problem to have.

For those interested in the company (and I know some are because of off-line communications), this Q1 report marks a decisive turning point. The company is no longer in financial peril. Its product array guarantees continued revenue and margin growth. I firmly believe each earnings report for the balance of the year will be positive.

Here’s a Seeking Alpha article that lays out the basics:


Enphase Energy +10% after stellar Q1 results; CFO Garcia to depart

Enphase Energy (ENPH +10.6%) rallies ~10% after beating estimates for both Q1 earnings and revenues, as it also exceeded its gross margin forecast.

ENPH says gross margin continued to expand in Q1, rising to 26.5% from 24.2% in Q4 2017 and 13.3% in the year-ago quarter.

ENPH says it started shipping its next-generation microinverter IQ 7 to U.S. customers during Q1 and recently began shipping IQ 7 to customers in the U.K.

I highly recommend reading the comments. There’s a cadre of wise investors who held through thick and thin for good reason. We’ve all benefited handsomely.

I’m sorry to see Garcia (the CFO) leave. He was pulled up from the ranks to step in when the previous CFO had basically screwed the pooch. He did a good job, but the Enphase management team is filling the ranks with experienced, proven hands (mostly from Cypress Semiconductor). I wish Bert well.

Analyst ratings continue to increase and improve. Today, Oppenheimer reiterated its Outperform rating with a $6 price target. More upgrades will be coming.