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 EVgo (NASDAQ:EVGO) 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 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 5.7% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 12.2%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ operating margin estimates and full-year revenue guidance exceeding analysts’ expectations.
“EVgo delivered yet another quarter of great financial and operating results, including the 7th sequential quarter of double-digit charging revenue growth,” said Badar Khan, EVgo’s CEO.
Interestingly, the stock is up 92.5% since reporting and currently trades at $7.41.
Is now the time to buy EVgo? Access our full analysis of the earnings results 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 and operating margin estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.9% since reporting. It currently trades at $5.23.
Is now the time to buy Shoals? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: 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, falling short of analysts’ expectations. It was a disappointing quarter, leaving some shareholders looking for more.
NuScale delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 67% since the results and currently trades at $14.36.
Read our full analysis of NuScale’s results here.
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 $1.01 billion, up 24.6% year on year. This print topped analysts’ expectations by 8.2%. It was a very strong quarter as it also produced full-year revenue guidance exceeding analysts’ expectations and an impressive beat of analysts’ earnings estimates.
The stock is flat since reporting and currently trades at $209.74.
Read our full, actionable report on First Solar here, it’s free.
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. This number beat analysts’ expectations by 1.2%. It was a stunning quarter as it also put up an impressive beat of analysts’ customer base and earnings estimates.
The company added 26,687 customers to reach a total of 984,000. The stock is down 4.7% since reporting and currently trades at $15.69.
Read our full, actionable report on Sunrun here, it’s free.
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