Investing

Earnings Previews: Enphase Energy, General Motors, QuantumScape, Texas Instruments

This promises to be a busy week for March-quarter earnings. More than a thousand U.S.-traded firms are scheduled to report results this week, including some of the country’s largest tech and energy firms.

Before markets opened on Monday, Otis Worldwide beat analysts’ profit estimates while missing on expected revenue. The elevator maker also narrowed its fiscal year earnings per share (EPS) forecast range and lowered its forecast revenue range. Shares were up about 2.3% in premarket trading.

Activision Blizzard missed on EPS and revenue, but Microsoft still has the $95.00 per share offer on the table, so the stock was down just 0.3%. Coca-Cola beat both top-line and bottom-line estimates and left its guidance unchanged. The stock traded up by about 0.8% in the premarket session Monday.

Before markets open on Tuesday, we shall hear from eight companies we already have previewed. ADM, Corning, D.R. Horton and PepsiCo were covered in one story, and General Electric, Raytheon, UPS and Valero in another.

Here is a look at four firms set to report results after markets close Tuesday.

Enphase Energy

Solar energy component maker Enphase Energy Inc. (NASDAQ: ENPH) has seen its share price fall by just 1% over the past year. Between mid-November and late January, however, the stock dropped by 55%. The stock gained most of that loss back by early April, but the shares have sagged since. Enphase issued a blizzard of press releases last week giving anecdotal reports on increased sales of solar energy and battery storage systems. Investors apparently want to hear some numbers before jumping on the stock.

Brokerages are bullish on the stock, with 20 of 28 analysts giving the stock a Buy or Strong Buy rating and the rest rating the stock at Hold. At a recent share price of around $153.60, the implied gain based on a median price target of $227.00 is about 47.8%. At the high target of $290.00, the upside potential is 88.8%.

For the first quarter, analysts have forecast revenue of $433.67 million, which would be up 5.1% sequentially and about 43.7% higher year over year. Adjusted EPS are forecast at $0.69, down 6% sequentially but up 23.2% year over year. For the 2022 fiscal year, analysts estimate EPS at $3.18, up 31.8%, on revenue of $2 billion, up almost 45%.

Enphase’s shares trade at 48.4 times expected 2022 EPS, 36.9 times estimated 2023 earnings of $4.17 and 30.0 times estimated 2024 earnings of $5.13 per share. The stock’s 52-week range is $108.88 to $282.46. Enphase does not pay a dividend. Total shareholder return for the past year was negative 4.5%.

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