Wrapping up Q1 earnings, we look at the numbers and key takeaways for the renewable energy stocks, including TPI Composites (NASDAQ:TPIC) 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 11.2% on average since the previous earnings results.
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%. Overall, it was a weaker quarter for the company with a miss of analysts' earnings estimates and full-year revenue guidance missing analysts' expectations.
“As expected, sales and adjusted EBITDA for the first quarter of 2024 were impacted by the timing of production line startups and transitions. As our customers prepare for an expected multi-year global wind market growth environment, we are excited to partner with them and align our factories to support their next generation blade models. Activity on these startups and transitions is progressing well and we remain confident 2024 will be a tale of two halves, as we are projecting a return to mid-single digit adjusted EBITDA margins and positive free cash flow in the second half of 2024,” said Bill Siwek, President and CEO of TPI Composites.
The stock is up 31.3% since reporting and currently trades at $4.78.
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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 9.5% since reporting. It currently trades at $106.65.
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 and Power Purchase Agreements revenue estimates.
Plug Power posted the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 4.6% since the results and currently trades at $2.64.
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%. More broadly, 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 9.5% since reporting and currently trades at $47.13.
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%. Revenue aside, it was a mixed quarter for the company with an impressive beat of analysts' earnings estimates.
The stock is down 23.2% since reporting and currently trades at $6.74.
This content was originally published on Stock Story
