The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Sunrun (NASDAQ: RUN) and the rest of the renewable energy stocks fared in Q1.
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 18 renewable energy stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 1.1% above.
Luckily, renewable energy stocks have performed well with share prices up 16.9% 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 $504.3 million, up 10.1% year on year. This print exceeded analysts’ expectations by 4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ customer base estimates and a solid beat of analysts’ EPS estimates.
“The first quarter was another strong quarter for Sunrun as we exceeded our volume and Cash Generation targets by significant margins in what is seasonally the slowest quarter of the year. We are focused on delivering the best product for customers, underwriting volumes with strong unit margins, optimizing our routes to market, and driving cost discipline, including leveraging AI for innovation, creating significant operating efficiencies and quality enhancement. This has allowed us to gain market share in recent periods and produce strong operating and financial results,” said Mary Powell, Sunrun’s Chief Executive Officer.
The stock is down 5.9% since reporting and currently trades at $6.95.
Is now the time to buy Sunrun? 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 11.4% since reporting. It currently trades at $126.10.
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 2.1% since the results and currently trades at $0.88.
Read our full analysis of Blink Charging’s results here.
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 $924.3 million, up 25.5% year on year. This print beat analysts’ expectations by 11.3%. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
Nextracker delivered the highest full-year guidance raise among its peers. The stock is up 5.2% since reporting and currently trades at $57.98.
Read our full, actionable report on Nextracker here, it’s free.
ChargePoint (NYSE: CHPT)
The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE: CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.
ChargePoint reported revenues of $97.64 million, down 8.8% year on year. This number lagged analysts' expectations by 3.2%. It was a softer quarter as it also logged a significant miss of analysts’ EBITDA and EPS estimates.
The stock is down 18.7% since reporting and currently trades at $0.72.
Read our full, actionable report on ChargePoint 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), 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.
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