NASDAQ$SHLS

Shoals Technologies Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Shoals reported a decrease in revenue due to project delays, but backlog and awarded orders increased.

Shoals Technologies Group reported a decrease in revenue for the second quarter of 2024, primarily due to project delays. Despite this, the company saw an increase in backlog and awarded orders. They are adjusting their full-year outlook due to uncertainty and volatility in the market.

  • Revenue decreased 17% year-over-year to $99.2 million due to project delays.
  • Gross profit was $40.0 million, with a gross profit margin of 40.3%.
  • Backlog and awarded orders increased 18% year-over-year to $642.3 million.
  • Adjusted EBITDA decreased to $27.7 million compared to the prior-year period.

Headline financials

Total Revenue

$99.2M

Previous: $119M-16.7%
EPS

$0.07

Previous: $0.14-50.0%
BLAO

$643M

No prior period
Adjusted EBITDA

$27.7M

No prior period
Adjusted Net Income

$17.8M

No prior period
Gross Margin

40.3%

No prior period
Capital Expenditures

-$4.49M

Previous: -$4.38M-2.5%
Free Cash Flow

$7.32M

Previous: $14.5M-49.7%
Net Income

$11.8M

Previous: $18.9M-37.6%
Operating Income

$18.6M

Previous: $31.6M-41.3%
Gross Profit

$40M

Previous: $50.5M-20.8%
Cash & Equivalents

$3.19M

Previous: $5.86M-45.6%
Total Assets

$788M

Previous: $819M-3.7%
Stock-Based Comp

$4.09M

Previous: $4.45M-8.1%

Revenue & EPS history

Shoals · Revenue · Quarterly

$99.2M

Q2 2024-16.7%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

The Company is providing an outlook for the third quarter and full year 2024 given the near-term uncertainty in the utility scale solar market, which has resulted in shifting order patterns.

Tailwinds

  • Revenue to be in the range of $95 to $105 million for Q3 2024
  • Adjusted EBITDA to be in the range of $25 to $30 million for Q3 2024
  • Revenue to be in the range of $370 to $400 million for full year 2024
  • Adjusted EBITDA to be in the range of $96 to $110 million for full year 2024
  • Adjusted net income to be in the range of $62 to $76 million for full year 2024

Headwinds

  • Uncertainty and volatility resulting from the current political cycle.
  • Potential tariffs.
  • Interest rates continues, and are impacting how developers are planning out their projects this year and next.
  • Cash Flow from operations to be in the range of $62 to $82 million for full year 2024
  • Capital expenditures to be in the range of $15 to $20 million for full year 2024

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-1.2%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-3.6%

Avg return

30 days after

38%

8 / 21 earnings

Positive

+27.2%

Q1 2023

Best reaction

-22.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%+6.8%+54.2%
Q4 2025-22.4%-40.1%-34.6%
Q3 2025-10.4%-12.2%-23.3%
Q1 2025+17.3%+35.4%+31.4%
Q4 2024-4.9%-32.4%-23.7%
Q3 2024-14.2%-21.0%-23.6%
Q2 2024-5.7%-6.2%+0.4%
Q1 2024-15.1%-21.6%-20.7%
Q4 2023-16.6%-15.5%-27.4%
Q3 2023-6.7%-14.2%-13.0%
Q2 2023-5.6%-11.7%-24.2%
Q1 2023+27.2%+27.0%+27.2%
Q4 2022+3.7%+5.6%-8.0%
Q3 2022+20.2%+33.9%+19.0%
Q2 2022+0.3%-2.9%-3.2%
Q1 2022+6.7%+20.1%+50.9%
Q4 2021+10.6%+12.4%-16.5%
Q3 2021-7.3%+6.6%-18.0%
Q2 2021-2.4%-0.1%-7.3%
Q1 2021-8.1%-10.3%-12.9%
Q4 2020+9.6%-10.7%-2.4%
Q3 2020
Q2 2020
Q1 2020
Q4 2019

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