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 Q3. 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 16 renewable energy stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 10.2% while next quarter’s revenue guidance was 8.4% below.
In light of this news, share prices of the companies have held steady as they are up 2.8% 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 $537.2 million, down 4.6% year on year. This print fell short of analysts’ expectations by 4.9%, but it was still a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.
“Sunrun’s focus on providing customers with the best experience and differentiated offerings is delivering strong operating and financial results. In the third quarter, we again set new records for both storage installation attachment rates and delivered solid quarter-over-quarter growth for solar installations while reporting higher Net Subscriber Values,” said Mary Powell, Sunrun’s Chief Executive Officer.
Unsurprisingly, the stock is down 15.4% since reporting and currently trades at $9.79.
Is now the time to buy Sunrun? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $54.47 million, up 60.2% year on year, outperforming analysts’ expectations by 6.1%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
American Superconductor delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 35.9% since reporting. It currently trades at $31.94.
Is now the time to buy American Superconductor? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $25.19 million, down 41.9% year on year, falling short of analysts’ expectations by 28.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Blink Charging delivered the weakest full-year guidance update in the group. As expected, the stock is down 21.9% since the results and currently trades at $1.57.
Read our full analysis of Blink Charging’s results here.
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 $1.17 billion, up 9.6% year on year. This number beat analysts’ expectations by 1%. Overall, it was an exceptional quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
The stock is up 10.9% since reporting and currently trades at $183.
Read our full, actionable report on Generac here, it’s free.
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 $102.2 million, down 23.9% year on year. This print surpassed analysts’ expectations by 3.4%. Aside from that, it was a mixed quarter as it also recorded revenue guidance for next quarter exceeding analysts’ expectations but a significant miss of analysts’ EBITDA estimates.
The stock is down 27.6% since reporting and currently trades at $4.18.
Read our full, actionable report on Shoals here, it’s free.
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), has 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 heading into 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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