What happened
Shares of Enphase Energy (ENPH 0.86%) jumped by as much as 26.7% in early trading Wednesday after the solar energy company reported its fourth-quarter financial results. The stock gave back some of those gains as the session went on, but was still up by about 10% at noon ET.
So what
Revenue jumped by 56% year over year to $412.7 million, slightly topping estimates, although net income fell 28% to $52.6 million, or $0.37 per share. On a non-GAAP basis, which pulls out one-time items, earnings were $0.73 per share, easily topping the $0.57 per share that analysts expected.
Image source: Getty Images.
Demand was generally strong in the market, but Enphase also started shipping the IQ8 microinverter -- its latest model, which can create a single-home microgrid with just solar panels and microinverters. And demand for IQ batteries was up 53% sequentially, showing the rapid growth in the energy storage market.
Now what
Enphase's stock had dropped more than 50% from its peak, and investors were concerned that supply constraints and higher interest rates will cause the solar market to slow. But that doesn't appear to be the case, and Enphase keeps on growing. That's why the stock is up big Wednesday, and with management expecting revenue of $420 million to $440 million in the first quarter, its growth doesn't appear likely to end anytime soon.
