Renewable Energy Stocks Q3 Recap: Benchmarking FuelCell Energy (NASDAQ:FCEL)

Looking back on renewable energy stocks’ Q3 earnings, we examine this quarter’s best and worst performers, 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 17 renewable energy stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 5.8% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.7% 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 $55.02 million, up 11.5% year on year. This print exceeded analysts’ expectations by 25.1%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ adjusted operating income estimates.

“We believe that our fourth quarter performance and ongoing cost reductions have positioned us well to meet the accelerating demand for electricity and data center projects in the U.S. and internationally. Our strategy is deeply focused on the data center market where we see significant opportunities for our efficient, resilient power solutions. We’ve simplified our product line, advanced efficiency, and integrated absorption chilling to help manage thermal loads—critical for high-compute environments. Our sales and marketing focus is increasingly centered on data center opportunities, as we have taken deliberate steps to prepare for this market, and we are actively engaging with data center operators and infrastructure finance providers to deliver the message that we are ready to provide reliable, cost-competitive solutions for these energy-intensive applications,” said Jason Few, President and CEO of FuelCell Energy.

Interestingly, the stock is up 10.3% since reporting and currently trades at $8.72.

Is now the time to buy FuelCell Energy? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $519 million, up 57.1% year on year, outperforming analysts’ expectations by 22.8%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 18% since reporting. It currently trades at $92.89.

Is now the time to buy Bloom Energy? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Generac (NYSE:GNRC)

With its name deriving from a combination of “generating” and “AC”, Generac (NYSE:GNRC) offers generators and other power products for residential, industrial, and commercial use.

Generac reported revenues of $1.11 billion, down 5% year on year, falling short of analysts’ expectations by 6.6%. It was a disappointing quarter as it posted a miss of analysts’ Residential revenue estimates and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 26.2% since the results and currently trades at $140.27.

Read our full analysis of Generac’s results here.

Enphase (NASDAQ:ENPH)

The first company to successfully commercialize the solar micro-inverter, Enphase (NASDAQ:ENPH) manufactures software-driven home energy products.

Enphase reported revenues of $410.4 million, up 7.8% year on year. This print beat analysts’ expectations by 12%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is down 8.9% since reporting and currently trades at $33.55.

Read our full, actionable report on Enphase here, it’s free for active Edge members.

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 $951.3 million, up 7.6% year on year. This number topped analysts’ expectations by 6.9%. It was an exceptional quarter as it also logged an impressive beat of analysts’ sales volume estimates and EPS guidance for next quarter exceeding analysts’ expectations.

The stock is up 17.3% since reporting and currently trades at $148.83.

Read our full, actionable report on EnerSys here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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