Let’s dig into the relative performance of American Superconductor (NASDAQ:AMSC) and its peers as we unravel the now-completed Q3 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 slower Q3. As a group, revenues missed analysts’ consensus estimates by 9.9% while next quarter’s revenue guidance was 8.5% below.
Luckily, renewable energy stocks have performed well with share prices up 11.7% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 6.1%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS and EBITDA estimates.
"AMSC delivered fiscal second quarter net income of nearly $5 million and grew revenue by 60% when compared to the same period last year,” said Daniel P. McGahn, Chairman, President and CEO, AMSC.
American Superconductor pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 38.2% since reporting and currently trades at $32.50.
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, outperforming analysts’ expectations by 1%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 15.2% since reporting. It currently trades at $190.02.
Is now the time to buy Generac? 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.
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 $67.54 million, up 92.4% year on year. This print surpassed analysts’ expectations by 2.4%. It was an exceptional quarter as it also produced a solid beat of analysts’ EPS estimates.
EVgo delivered the fastest revenue growth among its peers. The stock is up 20.5% since reporting and currently trades at $6.50.
Read our full, actionable report on EVgo here, it’s free.
Bloom Energy (NYSE:BE)
Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
Bloom Energy reported revenues of $330.4 million, down 17.5% year on year. This result missed analysts’ expectations by 13.8%. Aside from that, it was a mixed quarter as it also produced full-year revenue guidance exceeding analysts’ expectations but a significant miss of analysts’ EBITDA estimates.
Bloom Energy achieved the highest full-year guidance raise among its peers. The stock is up 157% since reporting and currently trades at $27.35.
Read our full, actionable report on Bloom Energy here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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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