Renewable Energy Stocks Q2 Teardown: Generac (NYSE:GNRC) Vs The Rest
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at renewable energy stocks, starting with Generac (NYSE:GNRC).
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 20 renewable energy stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 10.9% below.
Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.
In light of this news, renewable energy stocks have held steady with share prices up 1.5% on average since the latest earnings results.
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 $998.2 million, flat year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ earnings estimates.
Interestingly, the stock is up 10.4% since reporting and currently trades at $171.89.
Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $66.62 million, up 31.8% year on year, outperforming analysts’ expectations by 12.2%. The business had a stunning quarter with an impressive beat of analysts’ operating margin estimates and full-year revenue guidance exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 71.7% since reporting. It currently trades at $6.61.
Is now the time to buy EVgo? 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 disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 24.9% since the results and currently trades at $1.90.
Read our full analysis of Blink Charging’s results here.
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 number topped analysts’ expectations by 9.6%. It was a strong quarter as it also logged an impressive beat of analysts’ earnings estimates.
The stock is down 8.9% since reporting and currently trades at $5.01.
Read our full, actionable report on Shoals here, it’s free.
SolarEdge (NASDAQ:SEDG)
Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels.
SolarEdge reported revenues of $265.4 million, down 73.2% year on year. This number surpassed analysts’ expectations by 1.1%. Aside from that, it was a slower quarter as it produced revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.
The stock is down 20.6% since reporting and currently trades at $18.74.
Read our full, actionable report on SolarEdge here, it’s free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
