Renewable Energy Stocks Q3 In Review: FuelCell Energy (NASDAQ:FCEL) Vs Peers
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how FuelCell Energy (NASDAQ:FCEL) and the rest of the renewable energy stocks fared in Q3.
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.
FuelCell Energy (NASDAQ:FCEL)
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
FuelCell Energy reported revenues of $49.33 million, up 120% year on year. This print exceeded analysts’ expectations by 24.4%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
“In the fourth quarter, our revenue more than doubled, year over year, mainly driven by module sales to Gyeonggi Green Energy Co., Ltd. in South Korea,” said Jason Few, President and Chief Executive Officer.
FuelCell Energy Total Revenue
The stock is down 37.6% since reporting and currently trades at $9.44.
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 significantly 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.
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ:FLNC) helps store renewable energy sources with battery systems.
Fluence Energy reported revenues of $1.23 billion, up 82.5% year on year. This number missed analysts’ expectations by 4.7%. More broadly, it was actually a strong quarter as it logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is down 38.2% since reporting and currently trades at $14.53.
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. This print topped analysts’ expectations by 6.1%. It was an exceptional quarter as it also produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 19.7% since reporting and currently trades at $28.14.
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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