Let's dig into the relative performance of EnerSys (NYSE:ENS) and its peers as we unravel the now-completed Q1 renewable energy earnings season.
Renewable energy companies are buoyed by the secular trend of green energy that is upending traditional power generation. Those who innovate and evolve with this dynamic market can win share while those who continue to rely on legacy technologies can see diminishing demand, which includes headwinds from increasing regulation against “dirty” energy. Additionally, these companies are at the whim of economic cycles, as interest rates can impact the willingness to invest in renewable energy projects.
The 9 renewable energy stocks we track reported a slower Q1; on average, revenues missed analyst consensus estimates by 2%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and renewable energy stocks have held roughly steady amidst all this, with share prices up 4% on average since the previous earnings results.
EnerSys (NYSE:ENS) Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE:ENS) manufactures various kinds of batteries for a range of industries.
EnerSys reported revenues of $910.7 million, down 8% year on year, topping analysts' expectations by 2%. It was a solid quarter for the company, with an impressive beat of analysts' volume estimates and a decent beat of analysts' earnings estimates.
The stock is up 6.5% since the results and currently trades at $103.64.
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Best Q1: Nextracker (NASDAQ:NXT) Used in numerous power plants around the world, Nextracker (NASDAQ:NXT) provides solar tracker systems, which are advanced systems that help solar panels follow the sun.
Nextracker reported revenues of $736.5 million, up 42.1% year on year, outperforming analysts' expectations by 7.7%. It was a strong quarter for the company, with an impressive beat of analysts' revenue and volume estimates.
Nextracker achieved the fastest revenue growth among its peers. The stock is up 15.5% since the results and currently trades at $49.73.
Weakest Q1: Plug Power (NASDAQ:PLUG) Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ:PLUG) provides hydrogen fuel cells used to power electric motors.
Plug Power reported revenues of $120.3 million, down 42.8% year on year, falling short of analysts' expectations by 23.7%. It was a weak quarter for the company, with a miss of analysts' operating margin and earnings estimates.
Plug Power had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 1% since the results and currently trades at $2.49.
Sunrun (NASDAQ:RUN) Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ:RUN) provides residential solar electricity, specializing in panel installation and leasing services.
Sunrun reported revenues of $458.2 million, down 22.3% year on year, falling short of analysts' expectations by 3%. It was a decent quarter for the company, with an impressive beat of analysts' customer base estimates but a miss of analysts' operating margin estimates.
The company added 24,038 customers to reach a total of 957,313. The stock is up 15.4% since the results and currently trades at $13.29.
TPI Composites (NASDAQ:TPIC) Originally a powerboat manufacturer, TPI Composites (NASDAQ:TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems.
TPI Composites reported revenues of $299.1 million, down 26% year on year, falling short of analysts' expectations by 2%. It was a weak quarter for the company, with a miss of analysts' operating margin and earnings estimates.
The stock is up 20.3% since the results and currently trades at $4.38.
