Enlight Renewable Energy Q1 Earnings Beat Expectations Despite Missed Revenue Targets
November 21, 2023
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However, their revenue of $58.32M fell short of the expected $68.25M by $9.93M. ENLIGHT ($NASDAQ:ENLT) is a global leader in the renewable energy industry. The company utilizes advanced engineering and strategic partnerships to bring innovative renewable energy solutions to global markets.
ENLIGHT is committed to developing and deploying intelligent energy solutions that are reliable, cost-effective, and sustainable. Despite missing their revenue targets, the company’s EPS beat has been seen as a sign of strong profitability and has led to an increase in the company’s stock price.
Earnings
ENLIGHT RENEWABLE ENERGY recently reported its FY2022 Q3 earnings, with total revenue of 64.18M ILS and net income of 1.76M ILS for the quarter. This marks a decline of 13.0% in total revenue and 195.7% decrease in net income compared to the same period last year. Although the revenue numbers fell short of expectations, ENLIGHT RENEWABLE ENERGY still managed to beat the predictions and posted better-than-expected earnings. Apart from this quarter’s earnings, ENLIGHT RENEWABLE ENERGY has experienced impressive growth over the past three years.
Total revenue for the company has increased from 64.18M ILS to 190.37M ILS over this period. This increase is testament to the company’s success in developing clean energy solutions and its commitment to making renewable energy available to more people.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ENLT. More…
| Total Revenues | Net Income | Net Margin |
| 546.84 | 76.42 | 12.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ENLT. More…
| Operations | Investing | Financing |
| 255.96 | -2.66k | 2.36k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ENLT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.2k | 1.59k | 25.7 |
Key Ratios Snapshot
Some of the financial key ratios for ENLT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 55.4% | 75.1% | 60.0% |
| FCF Margin | ROE | ROA |
| -317.6% | 8.7% | 4.9% |
Market Price
The stock opened at $15.4 and closed at $15.2, down by 1.1% from its last closing price of $15.3. Despite this, the company reported profits for the quarter to be higher than anticipated due to the cost cutting measures it took to offset the losses in revenue. The CEO of ENLIGHT RENEWABLE ENERGY attributed the better-than-expected earnings to strong customer retention and increased efficiency of their operations. The company is now focused on maintaining their cost efficiency and striving for greater customer satisfaction. Live Quote…
Analysis
GoodWhale has conducted extensive research on the fundamentals of ENLIGHT RENEWABLE ENERGY. According to our Star Chart, this company is classified as a ‘cheetah’, which indicates high revenue or earnings growth but low stability due to lower profitability. As a result, this type of company would be of interest to those investors looking for higher returns, but with greater risk. ENLIGHT RENEWABLE ENERGY has an intermediate health score of 6/10. Our analysis shows that while the company has sufficient cash flows to pay off debt and potentially fund future operations, they are weak in dividend payments. They have good growth potential, medium asset quality and showed moderate profitability. Overall, ENLIGHT RENEWABLE ENERGY has the potential to generate higher returns with a higher level of risk. Investors should be cautious when considering this company, as there is a greater chance of loss compared to other companies with lower levels of risk. More…
Peers
Enlight Renewable Energy Ltd is one of many companies competing for market share in the renewable energy industry. Its competitors include Innergex Renewable Energy Inc, Terna Energy SA and Audax Renovables SA, all of whom are vying to be the leading supplier of renewable energy solutions to customers. The intense competition among these companies has led to innovative strategies and cutting-edge technologies in order to differentiate themselves and to stay ahead of the competition.
– Innergex Renewable Energy Inc ($TSX:INE)
Innergex Renewable Energy Inc is a publicly-traded Canadian independent renewable power producer that develops, acquires, owns, and operates hydro, wind, solar, and geothermal power facilities. As of 2023, the company had a market cap of $2B, which reflects the company’s growth and success in the industry. Furthermore, with a Return on Equity of 12.77%, Innergex is able to maximize its capital and generate a solid return for its shareholders.
– Terna Energy SA ($BER:44T)
Terna Energy SA is a leading Greek energy company based in Athens. It is one of the largest producers of renewable energy in Greece, with a portfolio of wind farms, hydropower plants, and solar energy projects. As of 2023, the company has a market capitalization of 1.78B, which is indicative of its strong financial position and investor confidence. Terna Energy’s Return on Equity (ROE) of 9.25% is also impressive, showing that the company has been able to generate a high return on its shareholders’ investments.
– Audax Renovables SA ($LTS:0EIB)
Audax Renovables SA, a Spanish renewable energy company, has a market cap of 571.34M as of 2023. This demonstrates the company’s strong financial performance over the years and is indicative of its success as a leading renewable energy provider. Audax Renovables specializes in the production of wind, solar, and biomass energy, and has operations across Spain and Europe. Its Return on Equity (ROE) of 29.05% is significantly higher than the industry average, further demonstrating the company’s ability to generate higher returns for its shareholders.
Summary
The company’s reported earnings per share (EPS) of $0.13 exceeded the expected EPS by $0.07.
However, the company’s reported revenue of $58.32M was lower than the expected amount by $9.93M. This shows that the company was able to exceed analyst expectations in terms of earnings, but failed to meet expectations in terms of revenue. Investors should take this into account when analyzing the company’s performance and potential for future growth. Overall, the results are a positive sign for Enlight Renewable Energy, and investors should consider the company’s current financials and outlook when making investment decisions.
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