Looking back on renewable energy stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Bloom Energy (NYSE:BE) 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 20 renewable energy stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 10.9% 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.
In light of this news, renewable energy stocks have held steady with share prices up 1.5% on average since the latest earnings results.
Bloom Energy (NYSE:BE)
Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.Bloom Energy reported revenues of $335.8 million, up 11.5% year on year. This print exceeded analysts’ expectations by 9.6%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ operating margin estimates and full-year revenue guidance exceeding analysts’ expectations.
KR Sridhar, CEO of Bloom Energy, said, “It is now widely understood that demand for electricity is expected to far exceed available supply through the grid. It is presenting Bloom with a huge opportunity. We are seeing high levels of commercial interest in our products and solutions. We continue to execute well, advance our technology and build out our team for future growth.”
Bloom Energy pulled off the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 3.5% since reporting and currently trades at $10.18.
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Best Q2: EVgo (NASDAQ:EVGO)
Created through a settlement between NRG Energy (NYSE:NRG) and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.EVgo reported revenues of $66.62 million, up 31.8% year on year, outperforming analysts’ expectations by 12.2%. The business had a stunning quarter with an impressive beat of analysts’ operating margin estimates and full-year revenue guidance exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 71.7% since reporting. It currently trades at $6.61.
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 24.9% since the results and currently trades at $1.90.
Nextracker (NASDAQ:NXT)
With its technology playing a key role in the Noor Abu Dabhi project, one of the largest solar farms in the world, Nextracker (NASDAQ:NXT) provides solar tracker systems that help solar panels follow the sun.Nextracker reported revenues of $719.9 million, up 50.1% year on year. This number beat analysts’ expectations by 16.8%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ operating margin estimates but a miss of analysts’ earnings estimates.
Nextracker achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 25.1% since reporting and currently trades at $35.06.
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 $852.9 million, down 6.1% year on year. This number came in 2.7% below analysts' expectations. More broadly, it was actually a strong quarter as it put up full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ operating margin estimates.
The stock is up 5.9% since reporting and currently trades at $100.75.
This content was originally published on Stock Story
