Shoals Technologies Shares Soar 21% on Strong Q3 Results
Shoals Technologies Group, Inc. (NASDAQ:SHLS) shares surged more than 21% on Tuesday following the company’s reported Q3 results, with EPS of $0.10 coming in better than the Street estimate of $0.08. Revenue was $90.8 million, beating the Street estimate of $83.03 million.
With the company posting strong numbers across the board including award and bookings growth of $144 million in the quarter, analysts at Oppenheimer said they believe investors will be increasingly confident in the company's growth trajectory.
The analysts believe the value of shortened construction timelines and skilled labor savings are driving outsized growth, supplementing a strong demand environment of solar where higher electricity prices are outpacing costs from inflation and increased interest rates.
The company provided its fiscal 2022 outlook, expecting revenue in the range of $310-325 million, compared to the Street estimate of $313 million. Adjusted EBITDA guidance was raised to the range of $80-$86 million from $77-$86 million.
| Symbol | Price | %chg |
|---|---|---|
| WAAREEENER.NS | 2609.9 | 0 |
| PREMIERENE.NS | 1147 | -0.77 |
| 322000.KS | 25550 | 0 |
| JSKY.JK | 52 | 0 |
Shoals Technologies Group, Inc. (NASDAQ:SHLS) Faces Market Challenges Despite Optimistic Revenue Outlook
- Shoals Technologies Group, Inc. (NASDAQ:SHLS) missed Q3 earnings expectations with earnings of $0.08 per share against the Zacks Consensus Estimate of $0.10.
- The company reported a quarterly revenue of $102.2 million and an adjusted EBITDA of $24.5 million.
Shoals Technologies Group, Inc. (NASDAQ:SHLS), a prominent figure in the energy transition market, recently faced a setback as its Q3 2024 earnings fell short of expectations. Christine Cho from Barclays set a price target of $5 for SHLS, which was then trading at $6.05, suggesting a potential decrease of approximately -17.36%.
During its Q3 2024 earnings call, Shoals reported a decline in earnings per share from the previous year's $0.20 to $0.08, missing the Zacks Consensus Estimate of $0.10. However, the company still managed to achieve a quarterly revenue of $102.2 million and an adjusted EBITDA of $24.5 million. The gross profit percentage stood at 24.8%, with an adjusted figure of 37.9%. Shoals demonstrated optimism by raising the midpoint of its full-year revenue outlook and securing a favorable initial ruling in an ITC case against Voltage, LLC.
Currently, SHLS is trading at $4.85, marking a decrease of 15.94% or $0.92. The stock has experienced significant volatility, with a daily range between $4.635 and $5.64. Over the past year, SHLS reached a peak of $17.495 and a trough of $4.635. The company's market capitalization is approximately $808.2 million, with a trading volume of 11,953,530 shares today.
Shoals Technologies Group Shares Surge 12% Despite Q1 Miss
Shoals Technologies Group, Inc. (NASDAQ:SHLS) shares were trading more than 12% higher in the afternoon despite the company’s reported Q1 earnings results, with EPS of $0.02 coming in worse than the consensus estimate of $0.07. Revenue was $68 million, compared to the consensus of $70.38 million.
Analysts at Oppenheimer said they are encouraged to see the company's new capacity coming online and new product development tracking as scheduled.
The analysts continue to expect the next 12 months to be crucial for the company in establishing its market position in the EU and Latin America, which could dictate its 3–5-year growth trajectory.
Given product is now certified, the analysts believe completing customer adoption will help signal growth in these geographies and understand the process is going well.
The company provided its Q2/22 outlook, expecting revenue in the range of $300-325 million, compared to the consensus estimate of $325.7 million.
