The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how renewable energy stocks fared in Q1, starting with Shoals (NASDAQ:SHLS).
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%. 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, but renewable energy stocks have performed well, with the share prices up 19.3% on average since the previous earnings results.
Shoals (NASDAQ:SHLS) Started in Huntsville, Alabama, Shoals (NASDAQ:SHLS) designs and manufactures products that make solar energy systems work more efficiently.
Shoals reported revenues of $90.81 million, down 13.6% year on year, falling short of analysts' expectations by 3.7%. Overall, it was a mixed quarter for the company with an impressive beat of analysts' earnings estimates.
“Despite additional project delays in the period, the team’s continued strong execution allowed Shoals to meet our first quarter outlook. While some industry and supply chain disruptions persist, including extended equipment lead times and long interconnection queues, we remain confident in the long-term fundamental drivers of the industry and our ability to execute our strategic plan. Our offering continues to resonate with customers, supported by backlog and awarded orders increasing 17% year-over-year, and more than $75 million in new orders added during the quarter,” said Brandon Moss, CEO of Shoals.
The stock is down 19.7% since reporting and currently trades at $7.05.
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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.
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 29.2% since the results and currently trades at $3.25.
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 pulled off the fastest revenue growth among its peers. The stock is up 10.8% since reporting and currently trades at $47.70.
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 $299.1 million, down 26% year on year, falling short of analysts' expectations by 2%. Zooming out, it was a weaker quarter for the company with a miss of analysts' earnings estimates and full-year revenue guidance missing analysts' expectations.
The stock is up 37.4% since reporting and currently trades at $5.
This content was originally published on Stock Story
