Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Generac (NYSE:GNRC) 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 growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but renewable energy stocks have performed well, with the share prices up 12.5% on average since the previous earnings results.
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. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
“First quarter results exceeded our expectations due to strong operating margins and execution,” said Aaron Jagdfeld, President and Chief Executive Officer.
The stock is up 14.5% since reporting and currently trades at $155.70.
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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 9.1% since reporting. It currently trades at $106.20.
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' earnings estimates.
Plug Power had the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 19.3% since the results and currently trades at $3.
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%. Revenue aside, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates.
The company added 24,038 customers to reach a total of 957,313. The stock is up 40.8% since reporting and currently trades at $16.22.
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%. Revenue aside, it was a very strong quarter for the company with an impressive beat of analysts' backlog sales estimates.
Nextracker achieved the fastest revenue growth among its peers. The stock is up 18.5% since reporting and currently trades at $51.
This content was originally published on Stock Story
