SEI Earnings Prediction
The chart below shows how SEI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SEI sees a -0.88% change in stock price 10 days leading up to the earnings, and a +4.57% change 10 days following the report. On the earnings day itself, the stock moves by +0.47%. This data can give you a slight idea of what to expect for the next quarter's release.
SEI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
96.30M
52.02%
28.37%
Gross Margin
28.65%
7.02%
25.66%
Operating Margin
19.41%
33.04%
176.50%
Net Margin
14.54%
32.30%
-592.88%
EPS
0.21
50.00%
-625.00%
No Data Available
SEI Earnings Analysis
Solaris Energy Infrastructure Inc Corporation (SEI.N) Earnings Conference Call
Positive
Transformation Year: 2024 was a tremendous year of transformation for Solaris Energy Infrastructure Inc.
Strong Free Cash Flow: Generated strong free cash flow in the Solaris Logistics Solution business.
Mobile Power Acquisition Growth: Acquired and grew a mobile power generation business, Solaris Power Solutions.
Fleet Expansion Plans: Power solutions fleet is set to grow from 150 megawatts to approximately 1,400 megawatts by early 2027.
Strategic Data Center Partnership: Announced a strategic long-term partnership for a minimum of 500 megawatts with an initial term of six years for a new data center.
Rising Power Demand: The demand for power is increasing due to electrification, reshoring of manufacturing, and data center growth.
Behind-the-Meter Power Solutions: The company is well positioned to supply behind-the-meter power solutions due to extended grid interconnection wait times.
Fleet Size Expansion: The recent order for 700 megawatts effectively doubles the fleet size to 1,400 megawatts.
Projected Adjusted EBITDA Range: Expected adjusted EBITDA of $475 million to $500 million on a consolidated basis at full deployment.
Revenue and EBITDA Surge: Achieved a 28% increase in total revenue to $96 million in Q4 2024, with a 68% increase in adjusted EBITDA to $37 million.
EBITDA Contribution Analysis: Solaris Power Solutions contributed more than 50% of adjusted EBITDA in Q4 2024.
Q1 2025 Activity Guidance Increase: Increased activity guidance for Q1 2025 by 20% to 360 megawatts, driven by increased power demand.
Consecutive Dividend Approval: The board approved the 26th consecutive dividend of $0.12 per share, reflecting strong cash generation and commitment to shareholder returns.
Negative
Q4 Revenue Growth Analysis: Revenue growth of 28% in Q4 2024 was primarily due to contributions from Solaris Power Solutions, indicating reliance on this segment for overall performance.
Sustainable EBITDA Concerns: Adjusted EBITDA of $37 million in Q4 2024, while a 68% increase from the prior quarter, may not be sustainable as it heavily relies on the new power solutions segment.
Corporate Expense Increase: The company expects a significant increase in corporate expenses, with approximately $9 million in Q1 due to stock-based performance units, which could impact profitability.
Joint Venture Ownership Limitations: The joint venture structure with a customer means that Solaris will only own 50.1% of the assets, potentially limiting control and financial benefits from the partnership.
Payback Period Concerns: The anticipated payback period of three to four years on uncontracted equipment may indicate a slower return on investment than expected, raising concerns about capital efficiency.
Grid Interconnection Challenges: The company is facing extended grid interconnection wait times, which could hinder growth and customer satisfaction if not addressed promptly.
SEI FAQs
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SEI Earning Call Sentiment
Solaris Energy Infrastructure Inc. (NYSE:SEI) Q4 2024 Earnings Call Transcript
SEI.N
8.07%Positive
The earnings call summary indicates strong financial performance with a 28% revenue increase and 68% EBITDA growth. The company's strategic expansion and commitment to shareholder returns are positive signals. The Q&A session highlighted growth opportunities and a competitive edge in sustainable solutions, though some responses were vague. Overall, the positive financial results, optimistic guidance, and ongoing strategic initiatives suggest a positive stock price movement over the next two weeks.
