Enphase Energy surges after reporting a revenue record and providing optimistic outlook.

• Enphase Energy's shares surged over 16% during extended trading on Tuesday after the release of their fourth-quarter results.
• Enphase earned 73 cents per share, adjusted, vs. 58 cents expected.
• Revenue came in at $412.7 million, vs. $397 million expected.
• According to CEO Badri Kothandaraman, the demand for microinverters and batteries from our customers in Q1 is strong.

During extended trading on Tuesday, shares of rose more than 16% after the company reported record revenues for the fourth quarter and beat analyst estimates on both the top- and bottom-line.

Despite ongoing supply constraints and logistical challenges, Enphase, which produces microinverters and backup energy storage for solar systems, reported a 17% increase in sales quarter over quarter. Additionally, the company issued optimistic forecasts.

According to CEO Badri Kothandaraman, the customer demand for Q1 for both microinverters and batteries is strong, and the component availability is much improved compared to the previous year.

Despite ongoing tight inventory for the company's energy storage products, Kothandaraman said the issues the company continues to face are global in nature, rather than company-specific.

According to Refinitiv, Enphase's performance exceeded analysts' expectations.

• Earnings: 73 cents per share, adjusted
• Revenue: $412.7 million

The company was predicted to earn 58 cents per share on $397 million in revenue by Wall Street analysts.

One year ago, Enphase reported earnings of 51 cents per share on an adjusted basis and revenue of $264.8 million in the same quarter.

During 2021, Enphase's full-year revenue increased to $1.38 billion from $774.4 million in 2020, while the company also recorded a record $352 million in cash flow from operations.

The company anticipates its first-quarter revenue in 2022 to range from $420 million to $440 million, surpassing the $409 million forecasted by analysts polled by StreetAccount.

Enphase's shares had fallen 21% in 2022 up until Tuesday's close. The company and the solar industry have been facing challenges such as the stalled Build Back Better plan, a possible reduction in California's solar incentive program, and a shift in the market from growth stocks to value stocks.

Despite the inflationary environment, the company's gross margin decreased slightly from 40.8% in the third quarter to 40.2% in the latest quarter.

Enphase raised prices once in the fall and plans to increase them again in the first quarter, but Kothandaraman believes this won't affect demand, as there is a "huge market appetite."

The company's lead time is currently between 14 and 16 weeks due to supply chain bottlenecks, particularly at ports. In normal circumstances, the timeframe would be around eight weeks.

Kothandaraman expressed optimism despite recent challenges, stating, "We are a resilient company," during a CNBC interview following the quarterly update.