Renewable Energy Q2 Earnings: Generac (NYSE:GNRC) Simply the Best

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the renewable energy stocks, including Generac (NYSE:GNRC) and its peers.

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 60.2% on average since the latest earnings results.

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. This print exceeded analysts’ expectations by 3.4%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ EBITDA estimates.

“Agile execution in a dynamic operating environment helped drive second quarter results ahead of our expectations with outperformance across both Residential and C&I product sales,” said Aaron Jagdfeld, President and Chief Executive Officer.

Interestingly, the stock is up 13% since reporting and currently trades at $171.06.

Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free for active Edge members.

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, outperforming analysts’ expectations by 4%. The business had a stunning quarter with a solid beat of analysts’ customer base and EPS estimates.

The market seems happy with the results as the stock is up 115% since reporting. It currently trades at $19.41.

Is now the time to buy Sunrun? 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 estimates.

Interestingly, the stock is up 129% since the results and currently trades at $3.65.

Read our full analysis of Plug Power’s results here.

ChargePoint (NYSE:CHPT)

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 $98.59 million, down 9.2% year on year. This print surpassed analysts’ expectations by 3.3%. Taking a step back, it was a slower quarter as it produced revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

The stock is up 7.2% since reporting and currently trades at $11.65.

Read our full, actionable report on ChargePoint here, it’s free for active Edge members.

FuelCell Energy (NASDAQ:FCEL)

Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.

FuelCell Energy reported revenues of $46.74 million, up 97.3% year on year. This number missed analysts’ expectations by 5.7%. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ revenue and adjusted operating income estimates.

FuelCell Energy achieved the fastest revenue growth among its peers. The stock is up 144% since reporting and currently trades at $10.27.

Read our full, actionable report on FuelCell Energy here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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