Earnings Highlights: Sunrun (NASDAQ:RUN) Vs The Rest Of The Renewable Energy Stocks
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the renewable energy industry, including Sunrun (NASDAQ:RUN) 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 9 renewable energy stocks we track reported a mixed Q1; on average, revenues missed analyst consensus estimates by 2%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches
between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the renewable energy stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.1% on average since the previous earnings results.
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 $458.2 million, down 22.3% year on year, falling short of analysts' expectations by 3%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
“We are starting the year with solid momentum in the business as our storage-first, margin-focused strategy is delivering strong results. In the first quarter we beat the high-end of both our storage and
solar installation guidance, set new records for storage attachment rates, and delivered another quarter of strong net subscriber values and an increasing mix of subscription services,” said Mary Powell, Sunrun’s Chief Executive Officer.
The stock is up 5.3% since the results and currently trades at $12.13.
Is now the time to buy Sunrun? Access our full analysis of the earnings results here, it's free.
Used in numerous power plants around the world, Nextracker (NASDAQ:NXT) provides solar tracker systems, which are advanced systems that help solar panels follow the sun.
Nextracker reported revenues of $736.5 million, up 42.1% year on year, outperforming analysts' expectations by 7.7%. It was a very strong quarter for the company, with an impressive beat of analysts' volume estimates.
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