As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the renewable energy industry, including First Solar (NASDAQ: FSLR) 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 Q1. As a group, revenues beat analysts’ consensus estimates by 4.7% while next quarter’s revenue guidance was in line.
Luckily, renewable energy stocks have performed well with share prices up 12.7% on average since the latest earnings results.
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, but overall, it was a disappointing quarter for the company with full-year revenue and EPS guidance missing analysts’ expectations.
“Despite the near-term challenges presented by the new tariff regime, we believe that the long-term outlook for solar demand, particularly in our core U.S. market, remains strong, and that First Solar remains well-positioned to serve this demand,” said Mark Widmar, Chief Executive Officer.
The stock is up 18.1% since reporting and currently trades at $162.
Is now the time to buy First Solar? Access our full analysis of the earnings results here, it’s free.
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 12.6% since reporting. It currently trades at $127.40.
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 2.6% since the results and currently trades at $0.84.
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 print surpassed analysts’ expectations by 4%. Overall, it was a very strong quarter as it also produced 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 up 10.5% since reporting and currently trades at $8.16.
Read our full, actionable report on Sunrun here, it’s free.
Enphase (NASDAQ: ENPH)
The first company to successfully commercialize the solar micro-inverter, Enphase (NASDAQ: ENPH) manufactures software-driven home energy products.
Enphase reported revenues of $356.1 million, up 35.2% year on year. This result came in 1.6% below analysts' expectations. Overall, it was a softer quarter as it also recorded a significant miss of analysts’ EBITDA and EPS estimates.
The stock is down 19% since reporting and currently trades at $43.34.
Read our full, actionable report on Enphase here, it’s free.
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.
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