Looking back on renewable energy stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including EnerSys (NYSE: ENS) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 6.6% while next quarter’s revenue guidance was 0.7% below.
Luckily, renewable energy stocks have performed well with share prices up 62.4% on average since the latest earnings results.
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 $893 million, up 4.7% year on year. This print exceeded analysts’ expectations by 5.3%. Overall, it was a strong quarter for the company with a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ adjusted operating income estimates.
"We delivered revenue of $893 million in the first quarter, up 5% year-over-year with adjusted diluted EPS of $2.08,” said Shawn O’Connell, President and Chief Executive Officer of EnerSys.
Interestingly, the stock is up 25.1% since reporting and currently trades at $114.14.
Is now the time to buy EnerSys? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: 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 $1.06 billion, up 6.3% year on year, outperforming analysts’ expectations by 3.4%. The business had an incredible quarter with a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 13.6% since reporting. It currently trades at $171.91.
Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $174 million, up 21.4% year on year, exceeding analysts’ expectations by 10.4%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 137% since the results and currently trades at $3.78.
Read our full analysis of Plug Power’s results here.
EVgo (NASDAQ: EVGO)
Created through a settlement between NRG Energy 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 $98.03 million, up 47.2% year on year. This number topped analysts’ expectations by 15.7%. It was a strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
The stock is up 31.5% since reporting and currently trades at $4.65.
Read our full, actionable report on EVgo here, it’s free for active Edge members.
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 $363.2 million, up 19.7% year on year. This print surpassed analysts’ expectations by 1.3%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates but revenue guidance for next quarter missing analysts’ expectations.
The stock is down 13.7% since reporting and currently trades at $36.68.
Read our full, actionable report on Enphase here, it’s free for active Edge members.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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