As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the renewable energy industry, including Fluence Energy (NASDAQ:FLNC) 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 17 renewable energy stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 5.7% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 2.8% on average since the latest earnings results.
Fluence Energy (NASDAQ:FLNC)
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 $464.9 million, up 7.7% year on year. This print fell short of analysts’ expectations by 24%, but it was still a strong quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
“We are beginning to see the benefit of our pipeline growth with an acceleration of orders over the past few months and backlog reaching another record level. We also reached substantial completion on our first delivery of Smartstack and affirmed access to our domestic content offering in the U.S.,” said Julian Nebreda, the Company’s President and Chief Executive Officer.
Fluence Energy delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 26.8% since reporting and currently trades at $17.20.
Best Q1: 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 $751.1 million, up 130% year on year, outperforming analysts’ expectations by 42%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
Bloom Energy delivered the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 20% since reporting. It currently trades at $271.64.