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 Sunrun (NASDAQ:RUN).
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 17 renewable energy stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 6.6% while next quarter’s revenue guidance was 0.7% below.
Luckily, renewable energy stocks have performed well with share prices up 62.4% on average since the latest earnings results.
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 $569.3 million, up 8.7% year on year. This print exceeded analysts’ expectations by 4%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ customer base and EPS estimates.
“We are delivering the best product and experience for customers, underwriting volumes with strong unit margins, driving cost and efficiency improvements, and growing our generation capabilities as the nation’s largest distributed power plant operator, hitting records this summer in providing energy capacity for the grid. This focus resulted in Sunrun setting a new record in the second quarter for Contracted Net Value Creation as we achieved an all time high 70% storage attachment rate. Not only is Sunrun providing Americans with the reliable and affordable energy they need to power their lives, we are scaling our generation business, and helping to stabilize the electricity grid while we do it,” said Mary Powell, Sunrun’s Chief Executive Officer.
Interestingly, the stock is up 126% since reporting and currently trades at $20.40.
Is now the time to buy Sunrun? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 13.6% since reporting. It currently trades at $171.91.
Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free for active Edge members.
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. Interestingly, the stock is up 122% since the results and currently trades at $2.29.
Read our full analysis of Blink Charging’s results here.
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 $98.03 million, up 47.2% year on year. This result surpassed analysts’ expectations by 15.7%. Overall, it was a strong quarter as it also logged a beat of analysts’ EPS and revenue estimates.
The stock is up 31.5% since reporting and currently trades at $4.65.
Read our full, actionable report on EVgo here, it’s free for active Edge members.
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 print lagged analysts' expectations by 21.1%. More broadly, it was actually a strong quarter as it logged a beat of analysts’ EPS and EBITDA estimates.
Fluence Energy delivered the highest full-year guidance raise but had the weakest performance against analyst estimates among its peers. The stock is up 61.5% since reporting and currently trades at $14.94.
Read our full, actionable report on Fluence Energy here, it’s free for active Edge members.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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