Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Sunrun (NASDAQ: RUN) and the best and worst performers in the renewable energy industry.
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 mixed Q4. As a group, revenues missed analysts’ consensus estimates by 4.6% while next quarter’s revenue guidance was 0.6% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 28.5% since the latest earnings results.
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 $518.5 million, flat year on year. This print fell short of analysts’ expectations by 3%. Overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
“We are growing, generating meaningful cash, increasing our book value of deployed systems, and paying down debt. We are poised to further improve our operating and financial results, and deliver a very strong 2025 with meaningful Cash Generation. Our actions to optimize our product mix, prioritize the highest value geographies and routes to market and an intense focus on cost as we grow have resulted in the highest Net Subscriber Values Sunrun has ever reported,” said Mary Powell, Sunrun’s Chief Executive Officer.
The stock is down 27.8% since reporting and currently trades at $5.71.
Read our full report on Sunrun here, it’s free.
Best Q4: Bloom Energy (NYSE: BE)
Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
Bloom Energy reported revenues of $572.4 million, up 60.4% year on year, outperforming analysts’ expectations by 12.8%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Bloom Energy scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems unhappy with the results as the stock is down 27.8% since reporting. It currently trades at $16.62.
Is now the time to buy Bloom Energy? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: TPI Composites (NASDAQ: TPIC)
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 $346.5 million, up 16.7% year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
As expected, the stock is down 52.9% since the results and currently trades at $0.68.
Read our full analysis of TPI Composites’s results here.
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 $679.4 million, down 4.4% year on year. This number topped analysts’ expectations by 3.6%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance exceeding analysts’ expectations.
The stock is down 6.6% since reporting and currently trades at $37.
Read our full, actionable report on Nextracker here, it’s free.
SolarEdge (NASDAQ: SEDG)
Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels.
SolarEdge reported revenues of $196.2 million, down 37.9% year on year. This print surpassed analysts’ expectations by 4%. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts’ adjusted operating income estimates.
The stock is down 27.3% since reporting and currently trades at $12.32.
Read our full, actionable report on SolarEdge here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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