Solar energy systems company Shoals (NASDAQ: SHLS) will be announcing earnings results this Tuesday before market hours. Here’s what to look for.
Shoals beat analysts’ revenue expectations last quarter, reporting revenues of $148.3 million, up 38.6% year on year. It was a mixed quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations but full-year EBITDA guidance missing analysts’ expectations.
Is Shoals a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Shoals’s revenue to grow 61% year on year, a reversal from the 11.5% decrease it recorded in the same quarter last year.
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 rarely misses Wall Street’s revenue estimates.
Looking at Shoals’s peers in the renewable energy segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Bloom Energy delivered year-on-year revenue growth of 130%, beating analysts’ expectations by 42%, and Generac reported revenues up 12.4%, topping estimates by 1.1%. Bloom Energy traded up 27.2% following the results while Generac was also up 19.4%.
Read our full analysis of Bloom Energy’s results here and Generac’s results here.
There has been positive sentiment among investors in the renewable energy segment, with share prices up 9.4% on average over the last month. Shoals is up 25.3% during the same time and is heading into earnings with an average analyst price target of $9.61 (compared to the current share price of $8.22).
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