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 Q2, starting with EnerSys (NYSE:ENS).
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.
Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating 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 3.7% since the latest earnings results.
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 print fell short of analysts’ expectations by 2.7%, but it was still a strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ operating margin estimates.
Interestingly, the stock is up 4.6% since reporting and currently trades at $99.49.
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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, outperforming analysts’ expectations by 1.2%. The business had a stunning quarter with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 13.1% since reporting. It currently trades at $18.62.
Weakest Q2: 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 $143.4 million, down 44.9% year on year, falling short of analysts’ expectations by 23%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations.
As expected, the stock is down 3.6% since the results and currently trades at $2.01.
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. This print beat analysts’ expectations by 2.4%. It was an exceptional quarter as it also recorded revenue guidance for next quarter exceeding analysts’ expectations.
The stock is up 14.4% since reporting and currently trades at $23.54.
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 topped analysts’ expectations by 9.6%. It was a very strong quarter as it also put up an impressive beat of analysts’ operating margin estimates and full-year revenue guidance exceeding analysts’ expectations.
Bloom Energy achieved the highest full-year guidance raise among its peers. The stock is down 1.3% since reporting and currently trades at $10.41.
This content was originally published on Stock Story
