Unpacking Q3 Earnings: ChargePoint (NYSE:CHPT) In The Context Of Other Renewable Energy Stocks

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at ChargePoint (NYSE:CHPT) 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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 5.8% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.8% since the latest earnings results.

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 $105.7 million, up 6.1% year on year. This print exceeded analysts’ expectations by 10.2%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates.

"ChargePoint’s third quarter results mark a return to growth, with revenue exceeding expectations,” said Rick Wilmer, CEO at ChargePoint.

The stock is down 19.5% since reporting and currently trades at $6.94.

We think ChargePoint is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: 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 $519 million, up 57.1% year on year, outperforming analysts’ expectations by 22.8%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 22.4% since reporting. It currently trades at $87.95.

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

Weakest Q3: 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 $1.11 billion, down 5% year on year, falling short of analysts’ expectations by 6.6%. It was a disappointing quarter as it posted a miss of analysts’ Residential revenue estimates and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 27.1% since the results and currently trades at $138.68.

Read our full analysis of Generac’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 $92.3 million, up 36.7% year on year. This print beat analysts’ expectations by 0.7%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.

EVgo pulled off the highest full-year guidance raise among its peers. The stock is down 13% since reporting and currently trades at $2.98.

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

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 $65.86 million, up 20.9% year on year. This result came in 2% below analysts' expectations. Taking a step back, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ revenue estimates.

The stock is down 50.6% since reporting and currently trades at $29.38.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.