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 Nextracker (NASDAQ:NXT).
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 in line.
Luckily, renewable energy stocks have performed well with share prices up 33.1% on average since the latest earnings results.
Nextracker (NASDAQ:NXT)
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextracker (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Nextracker reported revenues of $864.3 million, up 20% year on year. This print exceeded analysts’ expectations by 2.3%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates.
“Nextracker delivered another strong quarter across all key financial metrics and saw continued market share momentum,” said Dan Shugar, founder and CEO of Nextracker.
Interestingly, the stock is up 6% since reporting and currently trades at $68.85.
Is now the time to buy Nextracker? Access our full analysis of the earnings results here, it’s free.
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 20.8% since reporting. It currently trades at $182.75.
Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Plug Power (NASDAQ:PLUG)
Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ:PLUG) provides hydrogen fuel cells used to power electric motors.
Plug Power reported revenues of $174 million, up 21.4% year on year, exceeding analysts’ expectations by 10.4%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 24.8% since the results and currently trades at $1.99.
Read our full analysis of Plug Power’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 $1.10 billion, up 8.6% year on year. This number surpassed analysts’ expectations by 4.9%. Overall, it was a strong quarter as it also logged full-year revenue guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
The stock is up 20.9% since reporting and currently trades at $211.86.
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 $569.3 million, up 8.7% year on year. This print topped analysts’ expectations by 4%. It was a stunning quarter as it also recorded a solid beat of analysts’ customer count and EPS estimates.
The company added 30,810 customers to reach a total of 1.11 million. The stock is up 77.6% since reporting and currently trades at $16.
Read our full, actionable report on Sunrun here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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