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 Fluence Energy (NASDAQ: FLNC) 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 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 75.7% on average since the latest earnings results.
Fluence Energy (NASDAQ: FLNC)
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ: FLNC) helps store renewable energy sources with battery systems.
Fluence Energy reported revenues of $602.5 million, up 24.7% year on year. This print fell short of analysts’ expectations by 21.1%, but it was still a strong quarter for the company with a beat of analysts’ EPS and EBITDA estimates.
Fluence Energy achieved the highest full-year guidance raise but had the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is up 110% since reporting and currently trades at $19.45.
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 an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 21.7% since reporting. It currently trades at $184.14.
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: 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 $174 million, up 21.4% year on year, exceeding analysts’ expectations by 10.4%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income.
Interestingly, the stock is up 153% since the results and currently trades at $4.04.
Read our full analysis of Plug Power’s results here.
SolarEdge (NASDAQ: SEDG)
Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels.
SolarEdge reported revenues of $289.4 million, up 9.1% year on year. This result topped analysts’ expectations by 5.3%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.
The stock is up 47% since reporting and currently trades at $37.95.
Read our full, actionable report on SolarEdge here, it’s free for active Edge members.
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 $110.8 million, up 11.7% year on year. This print surpassed analysts’ expectations by 6.3%. It was an exceptional quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.
The stock is up 89.7% since reporting and currently trades at $10.18.
Read our full, actionable report on Shoals 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.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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