Solar energy systems company Shoals (NASDAQ: SHLS) will be reporting results this Tuesday before market hours. Here’s what you need to know.
Shoals beat analysts’ revenue expectations by 6.3% last quarter, reporting revenues of $110.8 million, up 11.7% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.
Is Shoals a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Shoals’s revenue to grow 28.3% year on year to $131.1 million, a reversal from the 23.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 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 three times over the last two years.
Looking at Shoals’s peers in the renewable energy segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bloom Energy delivered year-on-year revenue growth of 57.1%, beating analysts’ expectations by 22.8%, and Enphase reported revenues up 7.8%, topping estimates by 12%. Bloom Energy traded up 18% following the results while Enphase was down 15.3%.
Read our full analysis of Bloom Energy’s results here and Enphase’s results here.
Investors in the renewable energy segment have had steady hands going into earnings, with share prices flat over the last month. Shoals is up 21.2% during the same time and is heading into earnings with an average analyst price target of $8.73 (compared to the current share price of $10.59).
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