A Look Back at Renewable Energy Stocks’ Q3 Earnings: Nextracker (NASDAQ:NXT) Vs The Rest Of The Pack
Wrapping up Q3 earnings, we look at the numbers and key takeaways for the renewable energy stocks, including Nextracker (NASDAQ:NXT) 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 19 renewable energy stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 7% while next quarter’s revenue guidance was 7.2% below.
While some renewable energy stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1% since the latest earnings results.
Nextracker (NASDAQ:NXT)
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dabhi solar farm project, Nextracker (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Nextracker reported revenues of $635.6 million, up 10.9% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ backlog estimates and full-year EBITDA guidance exceeding analysts’ expectations.
“We’re very pleased with the company’s execution, driving a record first half of fiscal year 2025 with strong demand in Q2,” said Dan Shugar, founder and CEO of Nextracker.
Nextracker Total Revenue
Interestingly, the stock is up 37.6% since reporting and currently trades at $44.03.
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 $54.47 million, up 60.2% year on year, outperforming analysts’ expectations by 6.1%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
American Superconductor Total Revenue
The market seems happy with the results as the stock is up 19.7% since reporting. It currently trades at $28.14.
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 $25.19 million, down 41.9% year on year, falling short of analysts’ expectations by 28.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations .
Blink Charging delivered the weakest full-year guidance update in the group. As expected, the stock is down 26.4% since the results and currently trades at $1.48.
Founded by a team of nuclear scientists, NuScale (NYSE:SMR) specializes in small modular reactor technology, providing scalable nuclear power solutions.
NuScale reported revenues of $475,000, down 93.2% year on year. This result came in 95.6% below analysts' expectations. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ EPS estimates.
NuScale had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 3% since reporting and currently trades at $22.29.
Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE:ENS) manufactures various kinds of batteries for a range of industries.
EnerSys reported revenues of $883.7 million, down 1.9% year on year. This print met analysts’ expectations. More broadly, it was a slower quarter as it produced a miss of analysts’ sales volume estimates and EPS guidance for next quarter missing analysts’ expectations.
The stock is down 1.6% since reporting and currently trades at $100.14.
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% each in November and December), 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 the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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