Let’s dig into the relative performance of American Superconductor (NASDAQ: AMSC) and its peers as we unravel the now-completed Q1 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 16 renewable energy stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 1.9% above.
Luckily, renewable energy stocks have performed well with share prices up 11.1% on average since the latest earnings results.
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 $66.66 million, up 58.6% year on year. This print exceeded analysts’ expectations by 10.6%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Interestingly, the stock is up 16.4% since reporting and currently trades at $28.20.
Best Q1: 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 $942.1 million, up 5.9% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 12.2% since reporting. It currently trades at $127.
Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $20.75 million, down 44.8% year on year, falling short of analysts’ expectations by 24.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Blink Charging delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 14.2% since the results and currently trades at $0.74.
Read our full analysis of Blink Charging’s results here.
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 $504.3 million, up 10.1% year on year. This result topped analysts’ expectations by 4%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ customer base estimates and an impressive beat of analysts’ EPS estimates.
The company added 25,428 customers to reach a total of 1.07 million. The stock is down 7.4% since reporting and currently trades at $6.84.
Read our full, actionable report on Sunrun here, it’s free.
First Solar (NASDAQ: FSLR)
Headquartered in Arizona, First Solar (NASDAQ: FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.
First Solar reported revenues of $844.6 million, up 6.4% year on year. This print was in line with analysts’ expectations. Zooming out, it was a disappointing quarter as it logged full-year revenue guidance missing analysts’ expectations.
The stock is up 14.8% since reporting and currently trades at $157.52.
Read our full, actionable report on First Solar 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 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 Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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