As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the renewable energy industry, including FuelCell Energy (NASDAQ:FCEL) 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 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 1.3% since the latest earnings results.
FuelCell Energy (NASDAQ:FCEL)
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
FuelCell Energy reported revenues of $23.7 million, down 7.1% year on year. This print exceeded analysts’ expectations by 4.7%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ operating margin estimates.
“In the third quarter, our team achieved solid performance and continued cost management, while advancing our Powerhouse strategy,” said Mr. Jason Few, President and Chief Executive Officer.
Interestingly, the stock is up 10.5% since reporting and currently trades at $0.46.
Is now the time to buy FuelCell Energy? Access our full analysis of the earnings results here, it’s free.
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 16.5% since reporting. It currently trades at $19.18.
Is now the time to buy Sunrun? Access our full analysis of the earnings results here, it’s free.
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 29.2% since the results and currently trades at $1.79.
Read our full analysis of Blink Charging’s results here.
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. This number lagged analysts' expectations by 23%. It was a softer quarter as it also logged full-year revenue guidance missing analysts’ expectations.
The stock is down 1.7% since reporting and currently trades at $2.05.
Read our full, actionable report on Plug Power here, it’s free.
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 missed analysts’ expectations by 2.7%. Aside from that, it was a mixed 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 7.7% since reporting and currently trades at $102.50.
Read our full, actionable report on EnerSys here, it’s free.
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