Enphase shares soar as revenue forecasts for the first quarter are higher than expected

Enphase Energy, a maker of solar inverters, forecasted first-quarter revenues above Wall Street expectations Tuesday. This was after robust demand led to a higher-than-expected operating profit for the fourth quarter, which sent its shares up 6% after closing bell.

According to data compiled and analyzed by LSEG, the solar energy company expects first-quarter revenues to range between $340 million and $380 million. This compares to analyst expectations of $338.5 millions.

The forecast includes sales of up to 150 megawatt hours (IQ Batteries), which store solar energy to be used later, and about $50 million in safe harbor revenue. This is the amount of revenue that comes from any sales to customers who intend to install their inventory over a period of more than one year.

In a note, GLJ Research LLC's Gordon L. Johnson stated that "Stock-up in the after-market but this (inclusion in the Q1 guide of'safe harbour' revenue) may be frowned on as Street digests it."

Enphase's largest market in the U.S. saw revenue rise 6% from quarter to quarter due to increased microinverter sale.

According to data compiled and analyzed by LSEG, the Fremont, California, company's adjusted operating income for the quarter ended Dec. 31 was $120.4 million, which is higher than analysts' estimates of $100.4 millions. (Reporting by Mrinalika Roy in Bengaluru; Editing by Alan Barona)

(source: Reuters)