Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at SolarEdge (NASDAQ: SEDG) and its peers.
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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 5.7% while next quarter’s revenue guidance was 1.9% above.
Luckily, renewable energy stocks have performed well with share prices up 38.2% on average since the latest earnings results.
SolarEdge (NASDAQ: SEDG)
Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels.
SolarEdge reported revenues of $219.5 million, up 7.4% year on year. This print exceeded analysts’ expectations by 7.3%. Overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EPS estimates.
“I am pleased with the steady progress we made on the SolarEdge turnaround this quarter,” said Shuki Nir, CEO of SolarEdge.
The stock is up 113% since reporting and currently trades at $27.56.
Is now the time to buy SolarEdge? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $942.1 million, up 5.9% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 34.8% since reporting. It currently trades at $152.60.
Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $20.75 million, down 44.8% year on year, falling short of analysts’ expectations by 24.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Blink Charging delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 19.4% since the results and currently trades at $1.03.
Read our full analysis of Blink Charging’s results here.
EnerSys (NYSE: ENS)
Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE: ENS) manufactures various kinds of batteries for a range of industries.
EnerSys reported revenues of $974.8 million, up 7% year on year. This result met analysts’ expectations. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 6.9% since reporting and currently trades at $88.80.
Read our full, actionable report on EnerSys here, it’s free.
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 $133.7 million, up 11.2% year on year. This number surpassed analysts’ expectations by 1.3%. More broadly, it was a slower quarter as it logged a significant miss of analysts’ EBITDA and EPS estimates.
The stock is up 87.1% since reporting and currently trades at $1.69.
Read our full, actionable report on Plug Power here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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