2024-04-25 05:46:57 ET
Summary
- Enphase Energy's first quarter 2024 results disappointed the market, but there are signs of improvement in demand visibility and inventory destocking.
- I expect Europe and non-California states to improve in the second quarter, while California will be less of a wildcard going forward.
- The company continues to generate positive profits and free cash flow even at the depths of the industry downturn.
- ENPH's competitive position remains strong, with a stable market share for its microinverters and batteries.
- The company continues to launch new products and expand to new markets despite being in an industry downturn.
Enphase Energy ( ENPH ) recently published its first quarter 2024 results which disappointed the market.
That said, I do see the light at the end of the tunnel with demand visibility improving and the inventory destocking approaching the end.
In the US, while the company continues to under-ship in the region and the region continues to be weak, there is positive commentary by California installers about their ability to sell, improvement in revenue in March, among other things.
In Europe, Enphase Energy is starting to see some pockets of strength in Germany and France, while I expect the Netherlands to improve in the second quarter....
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For further details see:
Enphase Energy: Seeing The Sunlight At The End Of The Tunnel