Wrapping up Q2 earnings, we look at the numbers and key takeaways for the renewable energy stocks, including Nextracker (NASDAQ:NXT) 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 3.3% on average since the latest earnings results.
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 print exceeded analysts’ expectations by 16.8%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ operating margin estimates but a miss of analysts’ earnings estimates.
“Our fiscal year is off to an excellent start with another quarter of strong execution, where healthy demand dynamics continued for solar trackers in both the U.S. and international markets,” said Dan Shugar, founder and CEO of Nextracker.
Nextracker scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 71.7% since reporting and currently trades at $6.61.
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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.
ChargePoint (NYSE:CHPT)
The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE:CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.ChargePoint reported revenues of $108.5 million, down 27.9% year on year. This result missed analysts’ expectations by 4.4%. It was a softer quarter as it also produced revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.
The stock is down 18.7% since reporting and currently trades at $1.37.
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 result topped analysts’ expectations by 4.4%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ earnings estimates but full-year revenue guidance missing analysts’ expectations.
The stock is up 54.3% since reporting and currently trades at $21.38.
This content was originally published on Stock Story
