Enphase Energy Inc (NASDAQ:ENPH) had some positive developments to share with its investors. Firstly, it has collaborated with LG Electronics, where the latter will adopt its microinverter technology in its new generation of AC solar modules (ACM).
The new agreement
The new high-efficiency NeON 2 photovoltaic panels from LG will cater to the global solar market. The shipping of the units is expected to take place in the second half of 2015. Enphase’s vice president of product management at Enphase, Stefan Zschiengner said that their collaboration with LG will help simplify the ACM supply chain alongside reducing labor costs and capital. The new panels will also cut short the design and installation process. Moreover, the LG-Enphase ACM will meet the solar distributors, fleet owners and installers’ need of a reliable, cost-efficient and high-performance AC module product.
What’s happening in the sector?
Other than this, the day proved to be favourable for the solar-based stocks as the oil price rally ahead of the OPEC meeting on Friday helped the solar companies’ stock gain momentum. Moreover, the solar sector is optimistic that the Paris climate conference will lead to new emissions-reduction agreement, which may benefit them in the long-run.
The positive momentum in Enphase Energy Inc (NASDAQ:ENPH)’s stock gave it a respite from the pressure that stemmed from its weak fourth quarter guidance. Though Enphase posted in-line third quarter revenues, it failed to deliver on the EPS estimates. Also, the company lowered its Q4 revenue outlook in the range of $62 million to $70 million from analysts’ forecast of $11.7 million. The company cited weak demand and correction in its inventory levels as the reason for revised forecast. Further, the company anticipates a drop in its gross margin to 23%-26% in the fourth quarter from 30.9% in third quarter as a result of aggressive pricing strategy.
The stock of Enphase Energy Inc (NASDAQ:ENPH) traded 5.45% higher at $2.13 during the previous day’s trading session.