Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at First Solar (NASDAQ: FSLR) and the best and worst performers in the renewable energy industry.
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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 7.7% while next quarter’s revenue guidance was in line.
Luckily, renewable energy stocks have performed well with share prices up 18.7% on average since the latest earnings results.
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 $1.10 billion, up 8.6% year on year. This print exceeded analysts’ expectations by 4.9%. Overall, it was a strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
“In our view, the recent policy and trade developments have, on balance, strengthened First Solar’s relative position in the solar manufacturing industry,” said Mark Widmar, Chief Executive Officer.
Interestingly, the stock is up 13.9% since reporting and currently trades at $199.60.
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 27.6% since reporting. It currently trades at $193.13.
Is now the time to buy Generac? 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 $28.67 million, down 13.8% year on year, exceeding analysts’ expectations by 35.2%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Blink Charging delivered the biggest analyst estimates beat but had the slowest revenue growth in the group. As expected, the stock is down 2.9% since the results and currently trades at $1.
Read our full analysis of Blink Charging’s results here.
Fluence Energy (NASDAQ: FLNC)
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ: FLNC) helps store renewable energy sources with battery systems.
Fluence Energy reported revenues of $602.5 million, up 24.7% year on year. This result came in 21.1% below analysts' expectations. Taking a step back, it was still a strong quarter as it recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Fluence Energy had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 18.2% since reporting and currently trades at $7.57.
Read our full, actionable report on Fluence 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 $110.8 million, up 11.7% year on year. This number beat analysts’ expectations by 6.3%. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and full-year revenue guidance exceeding analysts’ expectations.
The stock is up 26.9% since reporting and currently trades at $6.81.
Read our full, actionable report on Shoals 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.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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