SHLS Earnings Prediction
The chart below shows how SHLS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SHLS sees a +1.54% change in stock price 10 days leading up to the earnings, and a -7.77% change 10 days following the report. On the earnings day itself, the stock moves by -0.33%. This data can give you a slight idea of what to expect for the next quarter's release.
SHLS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
106.99M
-17.98%
4.72%
Gross Margin
35.52%
-13.11%
55.99%
Operating Margin
-21.35%
-187.39%
-208.54%
Net Margin
7.31%
-42.49%
-2911.54%
EPS
0.05
-50.00%
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No Data Available
SHLS Earnings Analysis
Shoals Technologies Group Inc Corporation (SHLS.O) Earnings Conference Call
Positive
Strong Q4 Revenue Performance: Executed well in Q4 with revenue of $107 million, at the high end of expected range.
Strong Project Bookings: Strong bookings of $145 million in new projects, resulting in a total backlog of $635 million and a book-to-bill ratio of 1.4.
Upcoming Shipment Impact: Approximately $440 million of backlog has shipment dates in the upcoming 4 quarters, positively impacting 2025 forecast.
Strong Operational Performance: Adjusted EBITDA in Q4 was $26.4 million, representing 24.7% of revenue, indicating solid operational performance.
Product Innovation Expansion: Introduced over a dozen new products in 2024, addressing customer needs and enhancing product offerings.
Customer Diversification Success: Successfully diversified customer list, with over 10% of 2024 revenue coming from new customers who purchased less than $1 million in 2023.
International Project Expansion: Achieved $8 million in new international projects in Q4, expanding market presence in Australia and Chile.
Strong Project Demand: Quoted over $2.5 billion of projects in 2024, indicating strong demand and engagement with multiple EPCs.
OEM Business Growth: Continued growth in the OEM business, supporting the reshoring of the domestic supply chain for the U.S. solar industry.
Positive Outlook for 2025: Expecting improved fundamentals in 2025, with a solid order book and diversified customer base.
Negative
Q4 Adjusted Gross Profit Decline: Adjusted gross profit percentage in Q4 was 37.6%, lower than expected due to competitive environment and product mix.
Revenue Decline Analysis: Full year revenue declined 18.4% from 2023, attributed to widespread project delays in the industry.
Gross Profit Decline: Gross profit decreased to $40.2 million in Q4 compared to $55.4 million in the prior year, resulting in a GAAP gross profit percentage drop from 42.5% to 37.6%.
Net Income Decline: Net income for Q4 was $7.8 million, down from $16.6 million in the prior year, indicating a significant decline in profitability.
EBITDA Margin Decline: Adjusted EBITDA margin decreased to 24.7% from 30.0% year-over-year, driven by lower sales and reduced gross profit percentage.
Projected Revenue Loss: The company faced project delays amounting to $130 million in expected revenue for 2024, which was nearly 25% of the expected revenue for that year.
Litigation and Warranty Liabilities: The ongoing litigation related to wire insulation shrinkback has incurred $2.8 million in G&A expenses, with a remaining warranty liability of $39.9 million.
ITC Case Disappointment: The ITC case against Voltage has seen disappointing developments, with the court not upholding the initial determination, leading to an appeal.
Revenue Decline Forecast: The first quarter of 2025 is expected to be lighter in revenue compared to historical patterns, requiring higher working capital investment.
SHLS FAQs
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SHLS Earning Call Sentiment
Shoals Technologies Group, Inc. (SHLS) Q4 2024 Earnings Call Transcript
SHLS.O
0%Positive
The earnings call summary reveals a decline in key financial metrics such as revenue, gross profit, and EBITDA, coupled with project delays and competitive pricing pressures. Although there are some positive indicators like a strong order backlog and financial flexibility, the Q&A section highlights ongoing challenges, including labor issues and lack of clear guidance on ITC appeal outcomes. The absence of share repurchases further dampens sentiment. Given these factors, the stock price is likely to experience a negative reaction in the short term.
