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 3.4% last quarter, reporting revenues of $102.2 million, down 23.9% year on year. It was a mixed quarter for the company, with full-year revenue guidance exceeding analysts’ expectations but a significant miss of analysts’ 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 21.8% year on year to $102 million, a reversal from the 37.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
Analysts covering the company have generally 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 five times over the last two years.
Looking at Shoals’s peers in the renewable energy segment, some have already reported their Q4 results, giving us a hint as to what we can expect. American Superconductor delivered year-on-year revenue growth of 56%, beating analysts’ expectations by 8.4%, and Nextracker reported a revenue decline of 4.4%, topping estimates by 3.6%. American Superconductor traded up 33.9% following the results while Nextracker was also up 24.3%.
Read our full analysis of American Superconductor’s results here and Nextracker’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the renewable energy stocks have shown solid performance, the group has generally underperformed, with share prices down 5.8% on average over the last month. Shoals is down 1.6% during the same time and is heading into earnings with an average analyst price target of $7.14 (compared to the current share price of $4.52).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
