Where is our old enphase friend putnid? Is it time to trade MJ back for ENPH?
Enphase reports 4Q today after the close, looking for revenue of $390-410MM according to projection in 3Q ER. That would be up 51% Y/Y at midpoint, +14% sequentially.
ENPH was sitting at 180 before last ER, rocketed to 280 in about 20 trading days after, and since has lost 60% to 113 before recovering about 25% to current 140. Currently sitting almost exactly 100% away from returning to all time high and 22% below the price before last ER.
They recently completed acquisitions of Clippercreek (EV charging solutions) and 365 Pronto (predictive software platform). No deal or revenue impact disclosed so likely immaterial.
Of concern is supply chain challenges. From last ER transcript:
Maheep Mandloi – Credit Suisse – Analyst
Hey. Thanks for taking my questions and congratulations on the quarter. Badri, you’ve been talking about strong demand, but at the same time, there’s a lot of supply chain challenges. So just wanted to understand that better.
Is the issue or the challenge across the whole supply chain from sourcing, manufacturing to shipping or is there any specific pain point for – in your value chain right now? And just had a follow-up
Badri Kothandaraman – President and Chief Executive Officer
Simply put if you segment the business into microinverters and batteries. In microinverters, we have largely solved the supply constraints. On the batteries, you have a logistics issue. That’s huge.
In microinverters also you do have logistics issues, but on the batteries, it’s bigger because we have a flexibility of air shipping microinverters, which we do not on batteries. And that logistics issues are nothing specific to Enphase.
Long ENPH since Oct 2019.