ENPH stock is one of the biggest gainers on the NASDAQ on Wednesday after Enphase Energy Inc. (NASDAQ:ENPH) posted robust fiscal first-quarter results.
Fremont, California-based Enphase Energy has been on a hot streak over the past year or so and its recent Q1 2019 results managed to surpass company projections. ENPH stock has become one of the hottest investments for anyone who wants to invest in the energy space. The company, which was founded back in 2006, is involved in building home energy solutions and is also involved in the generation of solar energy.
The company reported a 43% year-on-year growth in revenue to $100.10 million in the latest quarter.
Earlier this year, Enphase released its report for the Q4 2018 and its yearly financials, which showed encouraging signs. At the time, the company projected that the Q1 2019 revenue would be around $92.5 million, which many believed a bold prediction considering the fact that such a figure would reflect year-on-year Q1 revenue growth of 32.5%.
However, the company has outdone itself, and in its Q1 2019 report, it has reported revenue in excess of $100 million, and that marks the first time in the company’s history that ENPH stock has crossed that magic number. The company is currently the global leader in the microinverter space for the solar energy industry. In addition to soaring revenues, the company profits and income soared as well, and it now finds itself in a very favorable position in the industry.
Solar Energy Boost
One of the biggest reasons behind Enphase’s rapid growth over the past year or so is the growth of the solar energy industry at a global level. Ever since China reduced the price of solar panels, the industry has been on an upward curve, and consequently, the generation of solar energy has also become far more commercially viable for a number of companies. For instance, in the United States alone, the solar energy power generation rose by a staggering 51% in 2018 on a year-on-year basis.
The trends have been kind to ENPH stock and the results for the company has been staggering. While revenue increased by 43%, gross profit rose by a staggering 82% year-on-year. The gross profit recorded by Enphase in this quarter was $33.3 million, while the same figure in 2018 stood at $18.3 million. The figures indicate that the company is all set to rule the industry for some time now.
ENPH stock is trading higher by 28% to $12.84 on huge volume. Earlier in the session, the stock made a multi-year high of $13.17.
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