Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Enphase (NASDAQ: ENPH) 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 16 renewable energy stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 1.9% above.
Thankfully, share prices of the companies have been resilient as they are up 8.9% on average since the latest earnings results.
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 $356.1 million, up 35.2% year on year. This print fell short of analysts’ expectations by 1.6%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
Unsurprisingly, the stock is down 26.9% since reporting and currently trades at $39.10.
Read our full report on Enphase here, it’s free.
Best Q1: 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 $942.1 million, up 5.9% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 9.8% since reporting. It currently trades at $124.28.
Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $20.75 million, down 44.8% year on year, falling short of analysts’ expectations by 24.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Blink Charging delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 15.4% since the results and currently trades at $0.73.
Read our full analysis of Blink Charging’s results here.
First Solar (NASDAQ: FSLR)
Headquartered in Arizona, First Solar (NASDAQ: FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.
First Solar reported revenues of $844.6 million, up 6.4% year on year. This print met analysts’ expectations. However, it was a disappointing quarter as it produced full-year revenue guidance missing analysts’ expectations.
The stock is up 13.6% since reporting and currently trades at $155.84.
Read our full, actionable report on First Solar here, it’s free.
American Superconductor (NASDAQ: AMSC)
Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
American Superconductor reported revenues of $66.66 million, up 58.6% year on year. This number beat analysts’ expectations by 10.6%. It was a stunning quarter as it also produced a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.
The stock is up 15.1% since reporting and currently trades at $27.90.
Read our full, actionable report on American Superconductor here, it’s free.
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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