Shares of Enphase rise as company forecasts revenue for Q1 above expectations

Enphase Energy, a maker of solar inverters, forecasted first-quarter revenues above market expectations on 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 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. Analysts had expected $338.5 millions.

The forecast includes sales of 150-170 megawatt-hours of IQ Batteries that are used to store excess energy from solar panels for later use. It also includes about $50 million in safe harbor revenues, which refers to any sales made by 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 had been up in the after-market but this (inclusion in Q1 of'safe harbour' revenue) may be frowned on as the Street digests it."

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

Data compiled by LSEG shows that the adjusted net operating profit of Fremont, California's company was $120.4 for the quarter ended Dec. 31. This is higher than analysts' estimates of $100.4 according to LSEG.

Bloomberg News reported that Enphase Energy plans to move the manufacturing of its battery cells out of China in order to avoid tariffs levied by U.S. president Donald Trump.

In an interview with Bloomberg News CEO Badri Kouthandaraman stated that the company will be moving its manufacturing operations outside of China. He did not specify where.

(source: Reuters)