SHLS - Shoals Technologies surges after Q1 beat revenue guidance hike

2023-05-08 17:36:17 ET

Shoals Technologies ( NASDAQ: SHLS ) +9.1% post-market Monday after easily beating expectations for Q1 earnings and revenues , and raising the lower end of full-year revenue guidance, lifting the midpoint above Wall Street consensus.

Q1 net income jumped to $14.3M, or $0.10/share, from $2.6M, or $0.02/share, in the year-earlier quarter, on revenues of $105.1M, up from $68M a year ago.

System Solutions revenue nearly doubled from the year-earlier quarter, which contributed to the improvement in gross margin to 45.9% compared to 38.7% in the prior-year period.

The company's backlog and awarded orders as of the end of Q1 totaled $527.5M, a 75% increase from the same time last year and 23% above the total at the end of Q4 2022.

For the full year, Shoals ( SHLS ) now sees revenues of $480M-$510M, up from $470M-$510M previously and above $489.2M analyst consensus estimate, and guided for adjusted earnings of $92M-$102M after previously forecasting $87M-$97M, as well as adjusted EBITDA of $145M-$160M, compared to $140M-$155M previously.

"Solar market conditions remain favorable, both for the industry as a whole and for Shoals specifically," CEO Jeff Tolnar said.

More on Shoals Technologies:

• See financial and valuation comparisons to sector peers
• SA analysis: Shoals Technologies Cut At Barclays On Risk To 2023 Outlook
• Stock price return: Down 17.5% YTD, up 60.5% in the past 12 months

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