Wrapping up Q3 earnings, we look at the numbers and key takeaways for the renewable energy stocks, including Generac (NYSE: GNRC) 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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 5.8% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.7% since the latest earnings results.

Weakest Q3: Generac (NYSE: GNRC)

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 $1.11 billion, down 5% year on year. This print fell short of analysts’ expectations by 6.6%. Overall, it was a disappointing quarter for the company with a miss of analysts’ Residential revenue estimates.

“Home standby and portable generator shipments grew sequentially in the quarter but were below expectations as a result of a power outage environment that was significantly below baseline average and the lowest third quarter of total outage hours since 2015,” said Aaron Jagdfeld, President and Chief Executive Officer.

Unsurprisingly, the stock is down 26.2% since reporting and currently trades at $140.27.

Read our full report on Generac here, it’s free for active Edge members.

Best Q3: 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 $519 million, up 57.1% year on year, outperforming analysts’ expectations by 22.8%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 18% since reporting. It currently trades at $92.89.

Is now the time to buy Bloom Energy? Access our full analysis of the earnings results here, it’s free for active Edge members.

First Solar (NASDAQ: FSLR)

Headquartered in Arizona, First Solar (NASDAQ: FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.

First Solar reported revenues of $1.59 billion, up 79.7% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.

Interestingly, the stock is up 23% since the results and currently trades at $287.23.

Read our full analysis of First Solar’s results here.

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 $55.02 million, up 11.5% year on year. This number surpassed analysts’ expectations by 25.1%. Zooming out, it was a slower quarter as it recorded a significant miss of analysts’ EBITDA estimates and a miss of analysts’ adjusted operating income estimates.

The stock is up 10.3% since reporting and currently trades at $8.72.

Read our full, actionable report on FuelCell Energy here, it’s free for active Edge members.

Shoals (NASDAQ: SHLS)

Started in Huntsville, Alabama, Shoals (NASDAQ: SHLS) designs and manufactures products that make solar energy systems work more efficiently.

Shoals reported revenues of $135.8 million, up 32.9% year on year. This result beat analysts’ expectations by 3.6%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is down 9.4% since reporting and currently trades at $9.37.

Read our full, actionable report on Shoals here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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