As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at renewable energy stocks, starting with Blink Charging (NASDAQ:BLNK).
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 mixed Q2. As a group, revenues missed analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 10.9% below.
Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.
Renewable Energy stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
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. This print fell short of analysts’ expectations by 14.5%. Overall, it was a disappointing quarter for the company with a miss of analysts’ earnings estimates.
“With our unique, vertically integrated model, we believe that Blink is well positioned to drive long-term growth and value for our stakeholders. We remain committed to expanding our global charging footprint and are leaning into our mission of advancing energy transition through innovative charging solutions,” said Brendan Jones, President and Chief Executive Officer of Blink Charging.
Blink Charging Total Revenue
Unsurprisingly, the stock is down 26.5% since reporting and currently trades at $1.86.
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, outperforming analysts’ expectations by 12.2%. The business had a stunning quarter with an impressive beat of analysts’ operating margin estimates and full-year revenue guidance exceeding analysts’ expectations.
EVgo Total Revenue
The market seems happy with the results as the stock is up 73.2% since reporting. It currently trades at $6.67.
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 $143.4 million, down 44.9% year on year, falling short of analysts’ expectations by 23%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations.
As expected, the stock is down 4.6% since the results and currently trades at $1.99.
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 $483.3 million, down 9.9% year on year. This result topped analysts’ expectations by 4.4%. Aside from that, it was a satisfactory quarter as it also logged an impressive beat of analysts’ earnings estimates but full-year revenue guidance missing analysts’ expectations.
The stock is up 49.3% since reporting and currently trades at $20.69.
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 $108.5 million, down 27.9% year on year. This number came in 4.4% below analysts' expectations. Overall, it was a softer quarter as it also produced revenue guidance for next quarter missing analysts’ expectations and a miss of analysts’ earnings estimates.
The stock is down 21.1% since reporting and currently trades at $1.33.
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