Shares of solar industry supplier Enphase Energy Inc. (NASDAQ:ENPH) jumped as much as 12.7% in trading Wednesday after reporting fourth-quarter 2018 results. At the market's close, shares traded 9.6% higher for the day.
Revenue was up 15.8% to $92.3 million, and a net loss of $2.9 million a year ago swung to a $709,000 profit, or $0.01 per share, in the fourth quarter. On a non-GAAP basis, earnings were $0.04 per share.
Analysts were only expecting $85.2 million in revenue, so the top line easily beat expectations. But they were also expecting $0.06 per share in non-GAAP earnings, so that's where there was worse-than-expected performance.
The solar market had a rough year in 2018, with tariffs and weak demand hitting all at once. So the fact that Enphase Energy was able to grow and report a profit is impressive. The bottom line would have been even better if it weren't for costs that management said were associated with air shipping some components to meet customer needs.
Enphase Energy isn't exactly a value stock, trading for 32 times estimated 2019 earnings. But strong margins and unexpected growth could still make the stock worth paying a premium for.