Q3 Earnings Highlights: Array (NASDAQ:ARRY) Vs The Rest Of The Renewable Energy Stocks
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at renewable energy stocks, starting with Array (NASDAQ:ARRY).
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 18 renewable energy stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 7.5% while next quarter’s revenue guidance was 7.2% below.
In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results.
Array (NASDAQ:ARRY)
Going public in October 2020, Array (NASDAQ:ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.
Array reported revenues of $231.4 million, down 34% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.
“ARRAY had another impressive quarter of operational execution, achieving revenue within our guidance range and strong profitability, as evidenced by our adjusted gross margin of 35.4%. Our orderbook remains healthy at $2 billion, with over 20% of our global orderbook now representing orders of OmniTrack™, which demonstrates the rapid expansion of solar projects utilizing land with diverse terrain. Additionally, a significant portion of orders in our domestic orderbook include customers evaluating domestic content, and we remain confident in our ability to provide 100% domestic trackers. Our high-probability pipeline remains robust, and we are greatly encouraged by the overall momentum in the business,” said Chief Executive Officer, Kevin Hostetler.
Array Total Revenue
Interestingly, the stock is up 4.5% since reporting and currently trades at $6.45.
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 an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
American Superconductor Total Revenue
The market seems happy with the results as the stock is up 15.3% since reporting. It currently trades at $27.10.
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 18.9% since the results and currently trades at $1.63.
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 $1.17 billion, up 9.6% year on year. This result beat analysts’ expectations by 1%. Overall, it was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA estimates.
The stock is down 3.9% since reporting and currently trades at $158.62.
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 $67.54 million, up 92.4% year on year. This print topped analysts’ expectations by 2.4%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ EPS and EBITDA estimates.
The stock is down 22.3% since reporting and currently trades at $4.19.
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 has 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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