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Enphase Energy Stock Soars 22% on Earnings, Cashing In On Battery Shortage

Ollie Martin - AskTraders News writer
Ollie Martin trader
Updated 9 Feb 2022

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Key points:

  • Enphase post solid revenue growth in Q421 earnings, ENPH stock soared over 20%
  • The solar-energy company has benefitted from a global battery shortage, driving sales
  • With shortages expected to continue throughout fiscal 2022, Enphase is well-positioned

A key figure in the solar sector, Enphase Energy’s (NASDAQ: ENPH) microinverters have proved instrumental in revolutionizing the logistics of solar power across residential homes. The company’s impact across Colorado has been undoubtedly impressive, but the company’s global footprint is starting to deepen – outlined by an uplifting earnings report after the market close on Tuesday.

Supply chain issues have proved to be a prevalent, almost homogenous issue throughout the economic landscape of the last year or so; causing companies to cut fiscal guidance across industries. 

For Enphase, the global battery shortage acted as nothing less than a cash cow for the company; with record demand spurring a 53% quarterly jump in IQ battery orders. Clutching at the silver lining, Enphase also announced the bolstering of its battery facilities in Mexico and India. With the shortage expected to continue throughout fiscal 2022, Enphase appears incredibly well-positioned.

In terms of revenue, Enphase recorded $412.7M for Q421, 17% up from $351.5M in the previous quarter. 

The strong demand for IQ microinverters and IQ batteries in the US and international markets was the underlying driving force behind the company’s impressive revenue growth. If shortages continue while demand increases, Enphase is likely to continue to benefit in the coming quarters. 

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If this wasn’t enough to win over investors; Enphase issued further information regarding strategic expansion into the EV and software sectors – critical burgeoning industries that are set to balloon in the coming years.

Enphase CEO, Badri Kothandaraman, talks on navigating supply bottlenecks: 

“Our operations team did a great job flexing manufacturing as 2021 played out” and that the company’s “situation has been stable primarily due to diligent supplier management and qualification of alternate suppliers during the past year”.

ENPH stock soared over 20% in Wednesday premarket trading as investors seek alternative investments at a time of economic uncertainty. Thrown under the spotlight in the midst of the battery shortage, 2022 could be a great year for Enphase revenue.

Ollie Martin - AskTraders News writer
Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.