Solar energy systems company Shoals (NASDAQ: SHLS) will be announcing earnings results this Tuesday before market open. Here’s what to look for.
Shoals beat analysts’ revenue expectations last quarter, reporting revenues of $140.6 million, up 74.9% year on year. It was a stunning quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding 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 44.3% year on year, improving from the 11.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Shoals has a history of exceeding Wall Street’s expectations.
Looking at Shoals’s peers in the renewable energy segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Bloom Energy delivered year-on-year revenue growth of 166%, beating analysts’ expectations by 27.7%, and Generac reported revenues up 10.6%, falling short of estimates by 0.5%. Bloom Energy traded down 1.9% following the results while Generac was also down 1.9%.
Read our full analysis of Bloom Energy’s results here and Generac’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the renewable energy stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Shoals is down 16.8% during the same time and is heading into earnings with an average analyst price target of $11.05 (compared to the current share price of $8.85).
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