Spotting Winners: NuScale (NYSE:SMR) And Renewable Energy Stocks In Q2

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how renewable energy stocks fared in Q2, starting with NuScale (NYSE:SMR).

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 satisfactory Q2. As a group, revenues missed analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 10.9% below.

After much suspense, the Federal Reserve cut its policy rate by 50bps (half a percent) in September 2024. This marks the central bank’s first easing of monetary policy since 2020 and the end of its most pointed inflation-busting campaign since the 1980s. Inflation had begun to run hot in 2021 post-COVID due to a confluence of factors such as supply chain disruptions, labor shortages, and stimulus spending. While CPI (inflation) readings have been supportive lately, employment measures have prompted some concern. Going forward, the markets will debate whether this rate cut (and more potential ones in 2024 and 2025) is perfect timing to support the economy or a bit too late for a macro that has already cooled too much.

Thankfully, renewable energy stocks have been resilient with share prices up 9.6% on average since the latest earnings results.

NuScale (NYSE:SMR)

Founded by a team of nuclear scientists, NuScale (NYSE:SMR) specializes in small modular reactor technology, providing scalable nuclear power solutions.

NuScale reported revenues of $967,000,. This print fell short of analysts’ expectations. Overall, it was a disappointing quarter for the company with some shareholders anticipating a better outcome.

“As the only SMR certified by the U.S. Nuclear Regulatory Commission, NuScale is uniquely prepared to deliver in a customer environment intensely focused on near-term deployment of carbon free power,” said John Hopkins, President and Chief Executive Officer of NuScale Power.

NuScale delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 114% since reporting and currently trades at $18.44.

Read our full report on NuScale here, it’s free.

Best Q2: 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, outperforming analysts’ expectations by 9.6%. The business had an incredible quarter with an impressive beat of analysts’ earnings estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.5% since reporting. It currently trades at $5.14.

Is now the time to buy Shoals? Access our full analysis of the earnings results here, it’s free.

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 19.4% since the results and currently trades at $2.04.

Read our full analysis of Blink Charging’s results here.

ChargePoint (NYSE:CHPT)

The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE:CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.

ChargePoint reported revenues of $108.5 million, down 27.9% year on year. This print came in 4.4% below analysts' expectations. Overall, it was a softer quarter as it also produced revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.

The stock is down 21.1% since reporting and currently trades at $1.33.

Read our full, actionable report on ChargePoint 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 $40.29 million, up 33.2% year on year. This result topped analysts’ expectations by 2.4%. It was an exceptional quarter as it also put up revenue guidance for next quarter exceeding analysts’ expectations.

The stock is up 28.4% since reporting and currently trades at $26.43.

Read our full, actionable report on American Superconductor here, it’s free.

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