Let’s dig into the relative performance of ChargePoint (NYSE:CHPT) and its peers as we unravel the now-completed Q2 renewable energy earnings season.
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 1.5% since the latest earnings results.
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 print fell short of analysts’ expectations by 4.4%. Overall, it was a softer quarter for the company with revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.
“ChargePoint continued to execute against its strategy and deliver results in line with our stated goals. Our second quarter revenue was within our stated guidance range and gross margin improved sequentially for the third consecutive quarter. Today, we have implemented an action plan to create efficiencies while reducing operating expenses,” said Rick Wilmer, CEO of ChargePoint.
Unsurprisingly, the stock is down 18.7% since reporting and currently trades at $1.37.
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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 17% since reporting. It currently trades at $19.26.
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 32.8% since the results and currently trades at $1.70.
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 $99.25 million, down 16.7% year on year. This print topped analysts’ expectations by 9.6%. It was a strong quarter as it also put up an impressive beat of analysts’ earnings and operating margin estimates.
The stock is up 16.7% since reporting and currently trades at $6.42.
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. Aside from that, it was a softer quarter as it produced full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ operating margin estimates.
The stock is up 4.3% since reporting and currently trades at $99.29.
This content was originally published on Stock Story
