Shoals Earnings: What To Look For From SHLS

Solar energy systems company Shoals (NASDAQ:SHLS) will be reporting earnings tomorrow before market hours. Here’s what you need to know.

Shoals beat analysts’ revenue expectations by 9.6% last quarter, reporting revenues of $99.25 million, down 16.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ earnings and EBITDA estimates.

Is Shoals a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Shoals’s revenue to decline 26.3% year on year to $98.85 million, a reversal from the 47.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Shoals has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Shoals’s peers in the renewable energy segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Sunrun’s revenues decreased 4.6% year on year, missing analysts’ expectations by 4.9%, and American Superconductor reported revenues up 60.2%, topping estimates by 6.1%. Sunrun traded down 11.8% following the results while American Superconductor was up 4.3%.

Read our full analysis of Sunrun’s results here and American Superconductor’s results here.

There has been positive sentiment among investors in the renewable energy segment, with share prices up 4.8% on average over the last month. Shoals is up 10.7% during the same time and is heading into earnings with an average analyst price target of $8.45 (compared to the current share price of $5.79).

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