FREMONT, Calif. - Enphase Energy, Inc. (NASDAQ: NASDAQ:ENPH), a leading global energy technology company, reported its financial outcomes for the second quarter of 2024 today. Despite missing analyst expectations for earnings per share (EPS), the company's stock price rose 5.9%, signaling a positive investor response. Enphase reported an adjusted EPS of $0.43, which fell short of the consensus estimate of $0.49. However, the company's revenue reached $303.5 million, although it did not meet the anticipated $310.32 million.
The company's revenue demonstrated a significant increase from the first quarter of 2024, where it stood at $263.3 million. Moreover, compared to the same quarter last year, Enphase's revenue showed a notable decline from $711.1 million. The gross margin on a non-GAAP basis was reported at 47.1%, including a net Inflation Reduction Act (IRA) benefit, and 41.0% when excluding it. This compares to a non-GAAP gross margin of 46.2% in the previous quarter.
For the third quarter of 2024, Enphase Energy has projected revenue to be between $370 million and $410 million. The midpoint of this guidance range, $390 million, is slightly below the analyst consensus of $408.4 million. The anticipated non-GAAP gross margin is expected to be between 47.0% to 50.0% with the net IRA benefit and 39.0% to 42.0% excluding it. The company also forecasts GAAP operating expenses to be in the range of $138 million to $142 million and non-GAAP operating expenses to be between $79 million to $83 million, excluding estimated costs for stock-based compensation, acquisition-related amortization, and restructuring.
Badri Kothandaraman, President and CEO of Enphase Energy, commented on the results, stating, "Our second-quarter performance reflects robust demand for our microinverter-based solar and battery systems, and we are excited about our growth prospects as we continue to innovate and expand our product offerings globally."
Enphase Energy's financial outlook for 2024 includes an annualized effective tax rate with IRA benefit, excluding discrete items, expected to be within a range of 17.0% to 19.0%. The company's positive stock movement following the earnings release reflects investor confidence in Enphase's strategic direction and market position, despite the EPS and revenue not meeting analyst estimates for the second quarter.
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