Solar inverter manufacturer Enphase Energy reported better-than-expected operating profit for the second quarter of 2024, buoyed by a rebound in demand in the United States. The Fremont, California-based company posted an adjusted net operating income of $61.1 million for the quarter ending June 30, surpassing analysts’ average estimate of $37.8 million, according to data from LSEG.
The company’s shares rose by 4.4% in extended trading following the announcement. Analysts noted a significant reduction in inventory levels over recent quarters, which had previously surged due to expanded manufacturing and subdued demand. Most U.S. states, excluding California, have begun showing signs of recovery.
Enphase had previously cut its workforce by 10% and scaled back manufacturing capacity to address excess inventory. For the second quarter, revenue in the United States, its largest market, increased nearly 32% sequentially to $198.7 million.
In contrast, European revenue remained stable due to a slower recovery in demand. The company reported an adjusted gross margin of 47.1% for the second quarter, up from 46.2% the previous year.
However, shipments of Enphase’s microinverters fell by 73% to 1,402,602 units in the second quarter, compared with 5,198,441 units during the same period last year. Looking ahead, Enphase forecasted third-quarter revenue to be between $370 million and $410 million, slightly below analysts’ estimates of $403.5 million.
