Renewable Energy Stocks Q2 Results: Benchmarking Shoals (NASDAQ:SHLS)
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Shoals (NASDAQ:SHLS) and the rest of the renewable energy stocks fared in Q2.
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 13 renewable energy stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 3.2% above.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some renewable energy stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results.
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 $99.25 million, down 16.7% year on year. This print exceeded analysts’ expectations by 9.6%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ earnings estimates but full-year revenue guidance missing analysts’ expectations.
“The second quarter was a busy one for Shoals, which included new commercial agreements, new product introductions, and the initiation of our first share repurchase program. The team executed well in the period, enabling Shoals to exceed our second quarter outlook. While we are not immune to the ongoing variability many are experiencing within our markets, we remain focused on what we can control and influence: expanding our offering, improving our operational capabilities, and taking exceptional care of our customers. The early results can be seen in backlog and awarded orders increasing by 18% year-over-year, to a record $642.3 million at the end of the quarter,” said Brandon Moss, CEO of Shoals.
Unsurprisingly, the stock is down 3.1% since reporting and currently trades at $5.33.
Is now the time to buy Shoals? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $523.9 million, down 11.2% year on year, outperforming analysts’ expectations by 1.2%. It was a stunning quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 19.4% since reporting. It currently trades at $19.65.
Is now the time to buy Sunrun? 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 $33.26 million, up 1.3% year on year, falling short of analysts’ expectations by 14.5%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 16.2% since the results and currently trades at $2.12.
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 $483.3 million, down 9.9% year on year, surpassing analysts’ expectations by 4.4%. Overall, it was a decent quarter for the company with an impressive beat of analysts’ earnings estimates but full-year revenue guidance missing analysts’ expectations.
The stock is up 32.2% since reporting and currently trades at $18.32.
Read our full, actionable report on Fluence Energy here, it’s free.
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 $852.9 million, down 6.1% year on year, falling short of analysts’ expectations by 2.7%. Revenue aside, it was a strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ operating margin estimates.
The stock is up 2.7% since reporting and currently trades at $97.73.
Read our full, actionable report on EnerSys here, it’s free.
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