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Long relevant to its ability to facilitate savings, changing conditions associated with climate change may continue to underpin the solar power specialist Enphase Energy (NASDAQ:ENPH). ENPH stock is up 18% heading into the afternoon session on strong results associated with the company’s second quarter 2022 earnings report. Exceeding expectations in terms of turnover and results, Enphase is one of the few companies to show an encouraging outlook this year.
Specifically developing microinverters, battery storage systems, and power generation monitoring software, Enphase is indeed a company to watch. In the second quarter, it generated earnings per share (EPS) of $1.07. That beat the consensus estimate of 83 cents. Additionally, the latest count compares very favorably to EPS of 53 cents posted in the prior year quarter. According to Zacks Equity Research, Enphase has exceeded consensus EPS estimates four times in the past four quarters.
On the revenue side, the company posted sales of $530.2 million, beating the consensus target by almost 4.7%. The latest haul compares favorably to the second quarter 2021 result, which saw sales of just over $316 million. Like the earnings trend, Enphase has beaten consensus revenue estimates four times in the past four quarters.
Notably, ENPH stock is up around 38.5% on a year-to-date (YTD) basis. This compares very favorably to the reference S&P500 index, which gained 17% over the same period. In addition, the impending impact of climate change could help strengthen actions in the future.
ENPH stock and climate change
Despite the economic and geopolitical turmoil of 2022, ENPH stock continues to rise. With the impact of climate change apparently worsening, switching to solar could be one of the best mechanisms to mitigate the paradigm shift.
According to a PA September 2021 report, solar energy “has the potential to provide up to 40% of the country’s electricity within 15 years”. Should such a surge occur, the development would have huge implications for the ENPH stock. Logically, President Joe Biden’s push for green energy solutions would present a net benefit to Enphase and its peers.
Of course, this is an ambitious goal. This would require a quadrupling of annual solar capacity — along with continued year-over-year increases — by the Department of Energy’s Office of Energy Efficiency and Renewable Energy. Yet with recent climate-related events, there may be more interest in such infrastructural engagements. This bodes well for ENPH stocks.
As of the date of publication, Josh Enomoto had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.