Enphase Energy’s (NASDAQ: ENPH) second-quarter results were boosted by strong growth out of Europe as soaring natural gas prices prompt consumers to go solar.
Shares of the company, which supplies solar energy components and battery systems, jumped more than 9% during extended trading Tuesday after Enphase beat revenue estimates for the second quarter. They opened Wednesday up $23.97, or 11.1% to $240.07
Earnings rang in at $1.07 per share, adjusted, on revenue of $530 million vs. $505 million expected
Europe was a key growth area, with revenue from the region jumping 69% quarter over quarter led by Germany and the Netherlands.
Currently the U.S. makes up roughly 80% of Enphase’s revenue. But CEO Badri Kothandaraman sees that changing fast.
“Maybe in two years from today, that number will get closer to 50/50,” he told the media, with Europe accounting for the bulk of international revenue.
This growth opportunity comes as Europe scrambles to rejigger its energy system in a bid to move away from Russian fuel.
Enphase is also seeing demand growth from the U.S., where utility bills are rising. Increasingly frequent grid outages are also prompting consumers to seek energy independence.
Total revenue for the company, which makes microinverters and backup energy storage for solar systems, jumped 20% quarter over quarter to a record $530 million. Gross margins increased quarter over quarter from 40.1% to 41.3%.
Enphase gave an upbeat outlook for the current quarter, with a revenue range of $590 million to $630 million. Wall Street was calling for $550.5 million.
