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 +8.49% 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
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SEI Earnings Analysis
Solaris Energy Infrastructure Inc Corporation (SEI.N) Earnings Conference Call
Positive
Transformative Year for Solaris: 2024 was a tremendous year of transformation for Solaris Energy Infrastructure Inc., generating strong free cash flow in the Solaris Logistics Solution business.
Power Solutions Expansion: The power solutions fleet is set to grow from over 150 megawatts to approximately 1,400 megawatts by early 2027, indicating significant expansion.
Strategic Partnership Announcement: A strategic long-term partnership was announced with a customer for a minimum of approximately 500 megawatts for a new data center, showcasing strong customer relationships.
Market Demand for Power Solutions: The company is well-positioned to meet the growing demand for behind-the-meter power solutions, driven by electrification and reshoring of manufacturing.
Activity Surge Projection: Solaris Logistics is seeing a significant increase in activity, with a projected 15% sequential increase in fully utilized systems in Q1 2025.
Consecutive Dividend Approval: The company has approved its 26th consecutive dividend of $0.12 per share, reflecting a commitment to returning cash to shareholders.
Strong EBITDA Contribution: Solaris Power Solutions contributed more than 50% of adjusted EBITDA in Q4 2024, indicating strong performance in this segment.
Adjusted EBITDA Projection: The company expects adjusted EBITDA to increase significantly, projecting $475 million to $500 million at full deployment of its fleet.
Joint Venture Partnership Benefits: The joint venture structure with a customer aligns interests and demonstrates confidence in Solaris as a long-term partner.
Shareholder Value Maximization: The company is focused on maximizing shareholder value while maintaining a strong financial profile.
Negative
Q4 Revenue Performance: The company reported a total revenue of $96 million for Q4 2024, which, while a 28% increase from the prior quarter, may not meet market expectations for sustained growth.
EBITDA Growth Analysis: Adjusted EBITDA of $37 million represented a 68% increase from the prior quarter, but the overall financial performance may still be viewed as inconsistent given the previous year's performance.
Corporate Expense Impact: The company anticipates a corporate expense impact of approximately $9 million in Q1 due to stock-based performance units, which could affect profitability.
Segment Growth Risks: Despite the growth in the Solaris Power Solutions segment, there is a reliance on new equipment orders and customer contracts, which may pose risks if demand does not materialize as expected.
Joint Venture Considerations: The joint venture structure with a customer, while beneficial, indicates a need for external partnerships to support growth, which may dilute control over operations and profits.
Expense Run Rate Outlook: The company expects a more normal run rate expense of approximately $7 million in Q2, which could indicate ongoing financial pressures despite revenue growth.
Sustainable Growth Concerns: The anticipated increase in average megawatts earning revenue to 360 megawatts in Q1 and 420 megawatts in Q2 may not be sustainable long-term, raising concerns about future growth prospects.
SEI FAQs
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SEI Earning Call Sentiment
Solaris Energy Infrastructure Inc. (NYSE:SEI) Q4 2024 Earnings Call Transcript
SEI.N
22.56%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.
