Enphase Energy (NASDAQ:ENPH) is setting its sights on Europe, as Russia’s invasion of Ukraine sends power prices to record highs, giving homeowners a “strong desire” for energy independence.
CEO Badri Kothandaraman said Tuesday that the company is “tripling down on Europe in terms of spending.” The comments followed the company’s first-quarter earnings, which beat analyst expectations on the top and bottom line.
Earnings came in at 79 cents per share, adjusted, vs 67 cents expected. Revenue proved to be $441 million vs $432 million expected.
Enphase, which makes microinverters and backup energy storage for solar systems, reported record revenue during the period, with sales jumping 46% year over year. Enphase also gave optimistic guidance for the current period, saying it expects to earn between $490 million and $520 million. That’s ahead of the $475 million analysts surveyed by Refinitiv were expecting.
The company has existing operations in Germany, France, Belgium and the Netherlands. New markets in Europe include Italy, Spain and Portugal.
Enphase has traditionally focused on the U.S., and during the first quarter the region accounted for 84% of the company’s revenue.
The company’s gross margin during the first quarter stood at 40.1%, up from 39.6% in the prior quarter. Enphase raised prices in 2022, after also hiking prices last fall, in an effort to combat rising raw material costs.
Policy uncertainty has also hurt the market performance of Enphase — and other solar companies.
Shares raced higher $18.42, or 12%, to $172.25 early Wednesday morning.
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