The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Sunrun (NASDAQ:RUN) and the rest of the renewable energy stocks fared in Q2.
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 15 renewable energy stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 9.3% below.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
While some renewable energy stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results.
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. This print exceeded analysts’ expectations by 1.2%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ arnings estimates.
“In the second quarter we again set new records for both storage installation and attachment rates, further differentiating Sunrun in the industry, beating the high-end of our storage installation guidance and delivering solid quarter-over-quarter growth for solar installation, Cash Generation and Net Subscriber Value,” said Mary Powell, Sunrun’s Chief Executive Officer.
Interestingly, the stock is up 14.7% since reporting and currently trades at $18.88.
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American Superconductor (NASDAQ:AMSC) Founded in 1987, American Superconductor (NASDAQ:AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
American Superconductor reported revenues of $40.29 million, up 33.2% year on year, outperforming analysts’ expectations by 2.4%. The business had an exceptional quarter with revenue guidance for next quarter exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 6.5% since reporting. It currently trades at $21.93.
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 disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 30.8% since the results and currently trades at $1.75.
Fluence Energy (NASDAQ:FLNC) Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ:FLNC) helps store renewable energy sources with battery systems.
Fluence Energy reported revenues of $483.3 million, down 9.9% year on year. This number surpassed analysts’ expectations by 4.4%. Zooming out, it was a mixed quarter as it also logged an impressive beat of analysts’ earnings estimates but full-year revenue guidance missing analysts’ expectations.
The stock is up 58.1% since reporting and currently trades at $21.91.
TPI Composites (NASDAQ:TPIC) Founded in 1968, TPI Composites (NASDAQ:TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems.
TPI Composites reported revenues of $309.8 million, down 18.7% year on year. This result was in line with analysts’ expectations. Aside from that, it was a weaker quarter as it produced a miss of analysts’ operating margin estimates and a miss of analysts’ earnings estimates.
The stock is up 32.3% since reporting and currently trades at $4.55.
This content was originally published on Stock Story
