Shoals Technologies Group (NASDAQ:SHLS) Posts Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Shoals Technologies Group reported a quarterly earnings per share (EPS) of $0.10, surpassing analyst expectations of $0.08 by $0.02.
• The company's revenue for the quarter was $110.84 million, exceeding estimates of $104.87 million and reflecting an 11.7% year-over-year increase.
• Following the earnings announcement, SHLS stock declined by 9.3%, trading at $4.88 with a significant volume of 7,469,018 shares.

Shoals Technologies Group (NASDAQ:SHLS - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.02, Briefing.com reports. The company had revenue of $110.84 million during the quarter, compared to analyst estimates of $104.87 million. Shoals Technologies Group had a return on equity of 7.63% and a net margin of 4.90%. The firm's quarterly revenue was up 11.7% on a year-over-year basis. During the same quarter last year, the company earned $0.10 earnings per share. Shoals Technologies Group updated its FY 2025 guidance to EPS and its Q3 2025 guidance to EPS.

Shoals Technologies Group Stock Down 9.3%

Shares of SHLS stock traded down $0.50 during trading hours on Tuesday, hitting $4.88. 7,469,018 shares of the company's stock traded hands, compared to its average volume of 6,351,935. The company has a quick ratio of 1.58, a current ratio of 2.34 and a debt-to-equity ratio of 0.25. The stock's fifty day simple moving average is $5.30 and its two-hundred day simple moving average is $4.39. Shoals Technologies Group has a 12-month low of $2.71 and a 12-month high of $7.00. The stock has a market cap of $815.34 million, a price-to-earnings ratio of 40.71, a PEG ratio of 0.70 and a beta of 1.61.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SHLS. AQR Capital Management LLC increased its holdings in shares of Shoals Technologies Group by 184.7% in the 1st quarter. AQR Capital Management LLC now owns 922,358 shares of the company's stock worth $2,975,000 after purchasing an additional 598,407 shares in the last quarter. Royal Bank of Canada increased its holdings in Shoals Technologies Group by 292.5% in the 1st quarter. Royal Bank of Canada now owns 106,531 shares of the company's stock worth $353,000 after buying an additional 79,392 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Shoals Technologies Group by 8.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 517,507 shares of the company's stock worth $1,718,000 after buying an additional 38,983 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd purchased a new position in Shoals Technologies Group in the 1st quarter worth about $57,000.

Analysts Set New Price Targets

SHLS has been the subject of several recent analyst reports. Jefferies Financial Group raised Shoals Technologies Group from a "hold" rating to a "buy" rating and boosted their price objective for the stock from $4.90 to $7.20 in a report on Monday, July 7th. Mizuho cut shares of Shoals Technologies Group from an "outperform" rating to a "neutral" rating and set a $7.00 price objective for the company. in a research note on Monday, July 14th. Barclays increased their target price on shares of Shoals Technologies Group from $4.00 to $7.00 and gave the company an "equal weight" rating in a report on Friday, July 18th. BNP Paribas reissued an "underperform" rating and issued a $4.00 price target (down from $4.50) on shares of Shoals Technologies Group in a research note on Thursday, May 15th. Finally, The Goldman Sachs Group raised their price objective on Shoals Technologies Group from $5.00 to $6.00 and gave the company a "buy" rating in a research note on Wednesday, May 7th. Four analysts have rated the stock with a sell rating, six have issued a hold rating and thirteen have assigned a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $8.77.

About Shoals Technologies Group

Shoals Technologies Group, Inc provides electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle (EV) charging applications in the United States and internationally. The company designs, manufactures, and sells system solutions for both homerun and combine-as-you-go wiring architectures, as well as offers technical support services.

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