The solar inverter manufacturer Enphase Energy has exceeded analysts' estimates for operating profit in the second quarter, driven by a recovery in demand in the United States. The Fremont, California-based company achieved an adjusted operating net income of $61.1 million for the quarter ending June 30, significantly above the average analysts' estimates of $37.8 million, according to data from LSEG.

The company's shares rose by 4.4 percent in after-hours trading.

Solar industry analysts have reported that inventory levels, which had increased in recent quarters due to production expansion and low demand, have normalized again. In most US states, except California, there is a recovery in demand.

Last year, Enphase reduced its workforce by 10 percent and lowered production capacities to manage excess inventory.

The revenue in the second quarter in the United States, Enphase's largest market, amounted to $198.7 million, representing an increase of nearly 32 percent compared to the previous quarter. In Europe, revenue remained unchanged due to sluggish demand recovery.

On an adjusted basis, the company's gross margin in the second quarter was 47.1 percent, compared to 46.2 percent in the previous year. Deliveries of their microinverters decreased by 73 percent to 1,402,602 units in the second quarter, compared to 5,198,441 units in the same period of the previous year.

Enphase forecasts revenue between 370.0 million and 410.0 million dollars for the third quarter, while analysts' estimates are at 403.5 million dollars.

The latest figures underscore the company's positive development in the US market, while challenges still remain in Europe.