Enphase Energy Inc. (NasdaqGS: ENPH) shares jumped Wednesday, lifting solar sector-related exchange traded funds, after reporting record quarterly revenue and higher profits.
On Wednesday, the Invesco Solar ETF (NYSEArca: TAN) advanced 6.0% and the Global X Solar ETF (RAYS) increased 6.4%, with both solar ETFs trading above their long-term resistance at the 200-day simple moving average.
Meanwhile, Enphase Energy shares surged 17.7%. ENPH makes up 11.9% of RAYS’ underlying portfolio and 11.9% of TAN.
The solar micro-inverters manufacturer revealed second-quarter earnings per share of 54 cents with a record revenue of $530.2 million for the quarter. In comparison, the company showed earnings of 28 cents per share on revenue of $316 million for the same quarter last year.
Enphase’s strong quarter was backed by expanding partnerships that helped its micro-inverters and energy storage businesses.
For example, ADT Solar, formerly known as Sunpro Solar, now exclusively offers Enphase IQ8 Microinverters as part of the company’s comprehensive home energy solution.
Belgium and Germany have signed an exclusive deal to acquire Enphase’s IQ Batteries to support the most common third-party string inverters to meet the rising demand for energy independence across the region in response to rising fossil fuel costs.
The Enphase IQ8 Microinverter system became the first to be certified by UL, a global safety science leader, based on the new North American safety and grid interconnection standards for connecting solar inverters, energy storage systems, and distributed energy resources to the grid.
“Our strategy is to build best-in-class home energy systems and deliver them to homeowners through our installer and distribution partners, enabled by an installer platform,” according to Enphase.
Looking ahead, Enphase projects that revenue will fall within a range of $590 million to $630 million, including shipments of 130 to 145 megawatt hours of Enphase IQ Batteries, for the third quarter of 2022.
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