Enphase Surges as Solar Funding Boosts Quarterly SalesJustin Doom
Enphase Energy Inc., a producer of microinverters for solar systems, rose the most in 19 months after increasing funding for rooftop panels helped second-quarter sales jump more than analysts expected.
Enphase climbed 14 percent to $11.06 at the close in New York, after gaining as much as 25 percent, the biggest intraday increase since December 27, 2012.
Second-quarter sales rose 41 percent from a year earlier to $82 million as the company added customers, particularly “small and mid-size installers, because of the democratization of solar financing,” Chief Executive Officer Paul Nahi said today in an interview. That beat the average $71.4 million of eight analysts’ estimates compiled by Bloomberg.
The quarterly net loss narrowed to $3 million, or 7 cents a share, from $6.4 million, or 15 cents, a year earlier, Petaluma, California-based Enphase said in a statement yesterday after the close of regular trading.
Enphase last month said it was working with Mosaic Inc., the operator of a peer-to-peer online financing platform for solar systems, to package loans with a maintenance agreement. Enphase expects to begin recognizing revenue from that deal in the third quarter, with most of it coming in 2015, Nahi said.
“We’re going for maximum growth while maintaining a positive slope on the bottom line,” Nahi said. “It’s the wrong time for us to back off the throttle, and we have to find that balance between growth and heading toward profitability.”
Microinverters convert direct current from a single solar panel to standard alternating current used in homes. One of its advantages over central inverter devices connected to several panels is that, if one panel fails, it doesn’t disrupt the entire array.