Wrapping up Q1 earnings, we look at the numbers and key takeaways for the renewable energy stocks, including Plug Power (NASDAQ:PLUG) and its peers.
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 an ok Q1; on average, revenues missed analyst consensus estimates by 2%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but renewable energy stocks have performed well, with the share prices up 11.1% on average since the previous earnings results.
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%. Overall, it was a weak quarter for the company with a miss of analysts' earnings and revenue estimates.
Plug CEO Andy Marsh stated: “We continue to make steady progress by following our established goals and business priorities. As we enhance our financial performance in the upcoming quarters, Plug is set to retain its leadership role in advancing the hydrogen economy, which is anticipated to experience swift expansion and widespread adoption globally in the future decades.”
Plug Power delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is up 29.2% since reporting and currently trades at $3.25.
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Best Q1: 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, outperforming analysts' expectations by 2%. It was a very strong quarter for the company with an impressive beat of analysts' volume estimates and a decent beat of analysts' earnings estimates.
The market seems happy with the results as the stock is up 8.9% since reporting. It currently trades at $106.02.
Generac (NYSE:GNRC) With its name deriving from a combination of “generating” and “AC”, Generac (NYSE:GNRC) offers generators and other power products for residential, industrial, and commercial use.
Generac reported revenues of $889.3 million, flat year on year, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Interestingly, the stock is up 13.9% since the results and currently trades at $154.82.
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, surpassing analysts' expectations by 7.7%. Zooming out, it was a very strong quarter for the company with an impressive beat of analysts' backlog sales estimates.
Nextracker scored the fastest revenue growth among its peers. The stock is up 10.8% since reporting and currently trades at $47.70.
Fluence Energy (NASDAQ:FLNC) Founded in 2018, Fluence Energy (NASDAQ:FLNC) specializes in developing advanced battery systems that store renewable energy efficiently and reliably.
Fluence Energy reported revenues of $623.1 million, down 10.7% year on year, surpassing analysts' expectations by 10.4%. Zooming out, it was a mixed quarter for the company, with a miss of analysts' EPS estimates.
Fluence Energy pulled off the biggest analyst estimates beat among its peers. The stock is down 16.7% since reporting and currently trades at $16.97.
This content was originally published on Stock Story
