Q3 Earnings Roundup: EnerSys (NYSE:ENS) And The Rest Of The Renewable Energy Segment
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how renewable energy stocks fared in Q3, starting with EnerSys (NYSE:ENS).
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.
EnerSys (NYSE:ENS)
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 was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ sales volume estimates and EPS guidance for next quarter missing analysts’ expectations.
EnerSys Total Revenue
Unsurprisingly, the stock is down 1.6% since reporting and currently trades at $100.14.
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, outperforming analysts’ expectations by 3.6%. The business had a very strong quarter with a solid beat of analysts’ backlog estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Nextracker Total Revenue
The market seems happy with the results as the stock is up 37.6% since reporting. It currently trades at $44.03.
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 and a significant miss of analysts’ adjusted operating income estimates.
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 in 1968, TPI Composites (NASDAQ:TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems.
TPI Composites reported revenues of $380.8 million, up 2.1% year on year. This print beat analysts’ expectations by 5.9%. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts’ billings estimates but a significant miss of analysts’ adjusted operating income estimates.
The stock is down 46.6% since reporting and currently trades at $1.49.
Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ:PLUG) provides hydrogen fuel cells used to power electric motors.
Plug Power reported revenues of $173.7 million, down 12.6% year on year. This number came in 17.3% below analysts' expectations. Overall, it was a disappointing quarter as it also recorded a miss of analysts’ Power Purchase Agreements revenue estimates and full-year revenue guidance missing analysts’ expectations.
The stock is up 22.9% since reporting and currently trades at $2.44.
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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