Why Enphase Energy Surged 22% in February
Shares of Enphase Energy (NASDAQ: ENPH) soared 22% in February, according to data provided by S&P Global Market Intelligence. The energy technology company's fourth-quarter results helped power the surge in its stock price. While revenue and earnings declined sharply, the company believes a bottom is near.
Enphase's revenue fell to $302.6 million during the fourth quarter, down from $551 million in the third quarter and $724.7 million during the year-ago period. Earnings declined to $0.15 per share, down from $0.80 per share in the third quarter and $1.06 per share in the year-ago period.
Despite the challenging market conditions, Enphase produced $15.4 million in free cash flow during the fourth quarter after funding $20.1 million in capital expenses. That enabled it to end the year in a strong financial position. It had $1.7 billion in cash and marketable securities at the end of the year, even after spending $100 million to repurchase shares during the fourth quarter. Enphase launched a $1 billion share repurchase program in July to capitalize on the steep decline in its share price.
Source Fool.com
