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Q1 Earnings Highlights: Sunrun (NASDAQ:RUN) Vs The Rest Of The Renewable Energy Stocks


Petr Huřťák /
2024/07/04 8:52 am EDT

As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the renewable energy industry, including Sunrun (NASDAQ:RUN) 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 9 renewable energy stocks we track reported a mixed Q1; on average, revenues missed analyst consensus estimates by 2%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the renewable energy stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.1% on average since the previous earnings results.

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 $458.2 million, down 22.3% year on year, falling short of analysts' expectations by 3%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.

“We are starting the year with solid momentum in the business as our storage-first, margin-focused strategy is delivering strong results. In the first quarter we beat the high-end of both our storage and solar installation guidance, set new records for storage attachment rates, and delivered another quarter of strong net subscriber values and an increasing mix of subscription services,” said Mary Powell, Sunrun’s Chief Executive Officer.

Sunrun Total Revenue

The stock is up 5.3% since the results and currently trades at $12.13.

Is now the time to buy Sunrun? Access our full analysis of the earnings results here, it's free.

Nextracker (NASDAQ:NXT)

Used in numerous power plants around the world, Nextracker (NASDAQ:NXT) provides solar tracker systems, which are advanced systems that help solar panels follow the sun.

Nextracker reported revenues of $736.5 million, up 42.1% year on year, outperforming analysts' expectations by 7.7%. It was a very strong quarter for the company, with an impressive beat of analysts' volume estimates.

Nextracker Total Revenue

Nextracker scored the fastest revenue growth among its peers. The stock is up 10.6% since the results and currently trades at $47.59.

Is now the time to buy Nextracker? Access our full analysis of the earnings results here, it's free.

Weakest Q1: 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 $120.3 million, down 42.8% year on year, falling short of analysts' expectations by 23.7%. It was a weak quarter for the company with revenue and EPS falling below expectations.

Plug Power had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 2.2% since the results and currently trades at $2.46.

Read our full analysis of Plug Power's results here.

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 $235.3 million, down 14.5% year on year, falling short of analysts' expectations by 5.6%. It was a slower quarter for the company, with a miss of analysts' earnings estimates.

The stock is up 0.9% since the results and currently trades at $11.85.

Read our full, actionable report on Bloom Energy here, it's free.

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 $90.81 million, down 13.6% year on year, falling short of analysts' expectations by 3.7%. It was a mixed quarter for the company. While revenue missed, EPS came in ahead of analysts' estimates.

The stock is down 31.7% since the results and currently trades at $6.

Read our full, actionable report on Shoals here, it's free.

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