This article was originally published on ETFTrends.com.
Solar sector-related ETFs climbed Wednesday after Enphase Energy Inc. (ENPH) revealed phenomenal second-quarter results on greater shipments of its latest generation of solar microinverters in North America and Europe.
Meanwhile, Enphase Energy shares were set for record highs, surging 30.8%. ENPH makes up 7.4% of of TAN's underlying portfolio.
Enphase Energy announced a second-quarter profit of $10.2 million on revenue of $134.1 million, up from the first quarter’s net income of $2.8 million on revenue of $100.2 million, GreenTechMedia reports. The company has made a swift turnaround from its $3.74 million loss on revenue of $75.9 million in the second quarter of 2018.
“We had a pretty strong quarter,” CEO Badri Kothandaraman said on Tuesday’s earnings call.
At least four brokerage firms have upwardly revised the outlook on Enphase Energy since the earnings came out, including an upgrade to "buy" from "neutral" at H.C. Wainwright, which also raised its price target to $36 from $16. Heading into the Wednesday, Five of the seven covering brokerage firms already had "strong buy" ratings, according to Schaeffer's Research.
The company has been reclaiming share in the solar microinverter market it helped create. Additionally, it saw consistent growth in its AC module products.
Enphase Energy is one of the largest suppliers of microinverters, a key technology to the solar panel industry, in the world. Microinverters help convert direct current generated by a single solar module to alternative currents. The company should continue to ride the ongoing growth in the broader solar photovoltaic industry.
Looking ahead, the U.S. Energy Information Administration projects that solar's share of the U.S. renewable power space will expand to nearly 50% by 2050 from 13% in 2018, surpassing all other renewable energy sources as renewable power's share of the overall grid expands to 31% from 18%, the Motley Fool reports.
For more information on the renewables space, visit our renewable energy category.
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