Q2 Earnings Roundup: EVgo (NASDAQ:EVGO) And The Rest Of The Renewable Energy Segment

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how renewable energy stocks fared in Q2, starting with EVgo (NASDAQ:EVGO).

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.

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 $98.03 million, up 47.2% year on year. This print exceeded analysts’ expectations by 15.7%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and adjusted operating income estimates.

“EVgo delivered another record quarter powered by strong operational performance, improved operating efficiencies and focused execution on our financial initiatives,” said Badar Khan, EVgo’s CEO.

Interestingly, the stock is up 30.1% since reporting and currently trades at $4.60.

Is now the time to buy EVgo? 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 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 estimates.

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.

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 result lagged analysts' expectations by 21.1%. Taking a step back, it was still a strong quarter as it recorded a beat of analysts’ EPS and EBITDA estimates.

Fluence Energy pulled off the highest full-year guidance raise but had the weakest performance against analyst estimates among its peers. The stock is up 110% since reporting and currently trades at $19.45.

Read our full, actionable report on Fluence Energy 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 number topped analysts’ expectations by 6.3%. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ adjusted operating income and 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

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 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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