Enphase Energy (ENPH) Pre-earnings Analysis
Analysis done on daily timeframe. Energy technology company Enphase is set to report their third quarter earnings this week, here are some details in focus:
Enphase has a mixed history when it comes to earnings, missing expectations on five different reports in the past two years. The company’s most recent earnings came in especially disappointing, which has sent shares lower leading up to this report. The company is amongst many other electronic technology companies that are seeing a slump in revenue despite the demand that AI needs. Enphase’s biggest opportunity is finding a way to capitalize on the AI energy demand and find a way to move their revenue back in the right direction.
In the past four quarters, ENPH’s revenue has declined over 50% from last year’s numbers, and net income has fallen along with it, which explains why the stock has struggled to rally along with the rest of the market. This quarterly report is set to be no different, with revenue also projected to decline.
At a $12B valuation and a 110x P/E, ENPH may be a hard stock to justify buying in the short term. Even if the company does get an earnings boost, it may not last long until they post multiple strong reports in the next 12 months.
Option chain analysis:
ENPH’s option chain expiring on November 15th currently reflects an implied volatility reading of 94%, which translates to about a (+/-) $19.00 move from the underlying stock. The direction of that move depends on the earnings outcome.