Renewable Energy Stocks Q2 Recap: Benchmarking First Solar (NASDAQ:FSLR)

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 First Solar (NASDAQ:FSLR) and the rest of the renewable energy stocks fared in Q2.

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.

The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting 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 6.3% on average since the latest earnings results.

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 exceeded analysts’ expectations by 8.2%. Overall, it was a very strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations and an impressive beat of analysts’ earnings estimates.

“We are pleased with our financial and operational execution through the first half of this year as we continue to deliver on our commitments,” said Mark Widmar, CEO of First Solar.

Unsurprisingly, the stock is down 2.7% since reporting and currently trades at $204.30.

Read why we think that First Solar is one of the best renewable energy stocks, our full report is 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.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.5% since reporting. It currently trades at $5.03.

Is now the time to buy Shoals? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: 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 $33.26 million, up 1.3% year on year, falling short of analysts’ expectations by 14.5%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.

As expected, the stock is down 19.8% since the results and currently trades at $2.03.

Read our full analysis of Blink Charging’s results here.

Stem (NYSE:STEM)

Focusing on clean energy, Stem (NYSE:STEM) has developed from a battery storage startup to an AI-driven energy management company.

Stem reported revenues of $34 million, down 63.4% year on year. This number came in 46.9% below analysts' expectations. Overall, it was a softer quarter as it also produced a miss of analysts’ earnings estimates.

Stem had the weakest full-year guidance update among its peers. The stock is down 42.8% since reporting and currently trades at $0.57.

Read our full, actionable report on Stem here, it’s free.

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 topped analysts’ expectations by 12.2%. Overall, it was a stunning quarter as it also logged an impressive beat of analysts’ operating margin estimates and full-year revenue guidance exceeding analysts’ expectations.

The stock is up 113% since reporting and currently trades at $8.21.

Read our full, actionable report on EVgo here, it’s free.

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