Solar energy systems company Shoals (NASDAQ:SHLS) will be reporting results this Tuesday before market hours. Here’s what investors should know.
Shoals beat analysts’ revenue expectations by 8.3% last quarter, reporting revenues of $80.36 million, down 11.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Is Shoals a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Shoals’s revenue to grow 5.1% year on year to $104.3 million, a reversal from the 16.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.
The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. Generac delivered year-on-year revenue growth of 6.3%, beating analysts’ expectations by 3.4%, and American Superconductor reported revenues up 79.6%, topping estimates by 11.4%. Generac traded up 28.9% following the results while American Superconductor was also up 29.4%.
Read our full analysis of Generac’s results here and American Superconductor’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 down 17.3% during the same time and is heading into earnings with an average analyst price target of $6.88 (compared to the current share price of $5.21).
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