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 -0.06% change in stock price 10 days leading up to the earnings, and a -0.85% change 10 days following the report. On the earnings day itself, the stock moves by -0.20%. 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
102.17M
-23.88%
2.94%
Gross Margin
22.77%
154.98%
-40.22%
Operating Margin
19.67%
349.62%
-4.38%
Net Margin
-0.26%
-96.45%
-102.19%
EPS
-0.00
-100.00%
-100.00%
No Data Available
SHLS Earnings Analysis
Shoals Technologies Group, Inc. Class A Common Stock Corporation (SHLS.O) Earnings Conference Call
Positive
Fourth Quarter Revenue Outlook: 1. Revenue Guidance Update: Shoals Technologies Group expects fourth quarter revenue to be in the range of $97 million to $107 million, indicating a strong outlook for the remainder of 2024.
Backlog and Demand Growth: 2. Increased Backlog: The company reported a backlog and awarded orders of $596.6 million, with approximately $455.2 million planned for delivery in the next four quarters, showcasing robust demand.
Project Quoting Surge: 3. Strong Project Quoting Activity: Shoals quoted almost $2 billion worth of projects this year alone, reflecting a 50% increase year-over-year, indicating strong commercial momentum.
Share Repurchase Success: 4. Successful Share Repurchase Program: The company completed its accelerated share repurchase program, repurchasing approximately 1.7 million shares in Q3, with $125 million remaining under the share repurchase authorization.
Gross Profit Margin Improvement: 5. Improved Gross Profit Margin: The adjusted gross profit percentage for the quarter was 37.9%, with a target of 42% over the long term, demonstrating effective cost management and operational efficiency.
Negative
Revenue Decline Analysis: 1. Decline in Revenue: Third quarter net revenue decreased by 23.9% year-over-year to $102.2 million, primarily due to project delays and competitive dynamics.
Warranty Liability Increase: 2. Increased Warranty Liability: The company recorded a $13.3 million charge related to wire insulation shrinkback remediation, with a remaining warranty liability of $53.0 million as of September 30th.
Decline in Adjusted EBITDA: 3. Lower Adjusted EBITDA: Adjusted EBITDA fell to $24.5 million, down from $48.0 million in the prior year, resulting in an adjusted EBITDA margin of 24.0%, compared to 35.8% a year ago.
Backlog Decrease Analysis: 4. Backlog Decline: Backlog and awarded orders decreased by $46 million sequentially to $596.6 million, indicating a slowdown in project awards.
Remediation Cost Increase: 5. Increased Cost Estimates for Remediation: The estimated cost range for wire insulation shrinkback remediation has increased to between $73 million and $160 million, with the company tracking towards the lower end of that range.
SHLS FAQs
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SHLS Earning Call Sentiment
Shoals Technologies Group, Inc. (SHLS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SHLS.O
8.86%Positive
The earnings call summary highlights mixed results: revenue decline and adjusted EBITDA decrease, but improved net loss and gross profit. The share repurchase program is a positive signal, yet project delays and competitive pressures remain concerns. The Q&A reveals management's cautious optimism but lack of specifics. The market cap of $1.1 billion suggests moderate volatility. Overall, the sentiment is balanced with positive and negative factors, leading to a neutral stock price prediction (-2% to 2%) over the next two weeks.