Let’s dig into the relative performance of Array (NASDAQ: ARRY) and its peers as we unravel the now-completed Q2 renewable energy earnings season.
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 0.7% below.
Luckily, renewable energy stocks have performed well with share prices up 79.3% on average since the latest earnings results.
Array (NASDAQ: ARRY)
Going public in October 2020, Array (NASDAQ: ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.
Array reported revenues of $362.2 million, up 41.6% year on year. This print exceeded analysts’ expectations by 24.3%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
“ARRAY remains focused on commercial execution—delivering 20% sequential revenue growth, with continued new booking momentum and actions taken to produce an improved quality, higher-margin orderbook. Over the last quarter, we also announced several transformative business updates through our definitive agreement to acquire APA Solar and the launch of Hail XP™. Additionally, we successfully issued new convertible notes, repaid our higher-cost term loan in full, and unlocked balance sheet constraints. With these updates, we significantly enhance our customer-focused product offerings, improve our capital structure and debt maturity profile, and better position ARRAY for long-term growth,” said Chief Executive Officer, Kevin G. Hostetler.
Interestingly, the stock is up 76.9% since reporting and currently trades at $10.34.
Is now the time to buy Array? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 26.9% since reporting. It currently trades at $192.
Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 $28.67 million, down 13.8% year on year, exceeding analysts’ expectations by 35.2%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Blink Charging delivered the biggest analyst estimates beat but had the slowest revenue growth in the group. Interestingly, the stock is up 110% since the results and currently trades at $2.16.
Read our full analysis of Blink Charging’s results here.
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 surpassed analysts’ expectations by 4%. Overall, it was a stunning quarter as it also recorded a solid beat of analysts’ EPS estimates.
The company added 30,810 customers to reach a total of 1.11 million. The stock is up 137% since reporting and currently trades at $21.31.
Read our full, actionable report on Sunrun here, it’s free for active Edge members.
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 $72.36 million, up 79.6% year on year. This result topped analysts’ expectations by 11.4%. It was a stunning quarter as it also produced EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
The stock is up 53.5% since reporting and currently trades at $67.45.
Read our full, actionable report on American Superconductor here, it’s free for active Edge members.
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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