Wrapping up Q2 earnings, we look at the numbers and key takeaways for the renewable energy stocks, including Array (NASDAQ:ARRY) 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 13 renewable energy stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 3.2% above.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some renewable energy stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results.
Array (NASDAQ:ARRY) Going public in October 2020, Array (NASDAQ:ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.
Array reported revenues of $255.8 million, down 49.6% year on year. This print exceeded analysts’ expectations by 9.2%. Despite the top-line beat, it was still a slower quarter for the company with full-year revenue guidance missing analysts’ expectations and underwhelming EBITDA guidance for the full year.
“We finished the second quarter with strong performance and execution and are pleased with the continued demand we’re seeing in our high-probability pipeline. Our orderbook remains healthy at over $2 billion and we’re encouraged by our customers’ interest in our portfolio of products and services and the longer-term tailwinds supporting utility-scale solar as one of the lowest cost options to satisfy rapidly growing energy needs,” said Chief Executive Officer, Kevin Hostetler.
Unsurprisingly, the stock is down 27.5% since reporting and currently trades at $6.53.
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Best Q2: 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 $523.9 million, down 11.2% year on year, outperforming analysts’ expectations by 1.2%. It was a stunning quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 19.1% since reporting. It currently trades at $19.60.
Weakest Q2: Blink Charging (NASDAQ:BLNK) One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.
Blink Charging reported revenues of $33.26 million, up 1.3% year on year, falling short of analysts’ expectations by 14.5%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 15% since the results and currently trades at $2.15.
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 $143.4 million, down 44.9% year on year, falling short of analysts’ expectations by 23%. Overall, it was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.
The stock is up 1.2% since reporting and currently trades at $2.11.
TPI Composites (NASDAQ:TPIC) Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE:TPC) is a civil and building construction company offering diversified general contracting and design-build services.
TPI Composites reported revenues of $309.8 million, down 18.7% year on year, in line with analysts’ expectations. Taking a step back, it was a weak quarter for the company with a miss of analysts’ earnings estimates .
The stock is up 12.2% since reporting and currently trades at $3.86.
This content was originally published on Stock Story
