NASDAQ$SHLS

Shoals Technologies Group Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Shoals reported record quarterly revenue with significant impact on gross margin due to wire insulation shrinkback expenses.

Shoals Technologies Group, Inc. reported a 48% year-over-year increase in revenue, reaching a record $134.2 million for the third quarter of 2023. However, gross margin was significantly impacted by $50.2 million in wire insulation shrinkback expenses, resulting in a net loss of $(9.8) million. Adjusted EBITDA increased by 81% year-over-year to $48.0 million, and backlog and awarded orders grew by 34% year-over-year to $633.3 million.

  • Revenue grew 48% year-over-year to a record $134.2 million.
  • Gross margin was 10.5%, impacted by $50.2 million in wire insulation shrinkback expenses.
  • Net loss was $(9.8) million.
  • Backlog and awarded orders increased 34% year-over-year to $633.3 million.

Headline financials

Total Revenue

$134M

Previous: $90.8M+47.8%
EPS (adj)

$0.20

Previous: $0.10+100.0%
BLAO

$633M

Previous: $471M+34.4%
Adjusted EBITDA

$48M

Previous: $26.6M+80.5%
Adjusted Net Income

$33.4M

Previous: $16.6M+100.9%
Capital Expenditures

-$7.64M

Previous: -$2.39M-219.3%
Free Cash Flow

-$17.5M

Previous: $5.57M-413.9%
Net Income

-$9.83M

Previous: $7.96M-223.5%
Operating Income

-$10.6M

Previous: $20M-152.9%
Gross Profit

$14.2M

Previous: $36M-60.7%
Cash & Equivalents

$9.22M

Previous: $11.2M-17.7%
Total Assets

$840M

Previous: $530M+58.6%
Stock-Based Comp

$5.09M

Previous: $3.99M+27.6%

Revenue & EPS history

Shoals · Revenue · Quarterly

$134M

Q3 2023+47.8%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

The Company is narrowing its outlook for revenue and raising its outlook for Adjusted EBITDA and Adjusted net income. The outlook for interest expense and capital expenditures remains unchanged.

Tailwinds

  • Revenue to be in the range of $485 million to $495 million
  • Adjusted EBITDA to be in the range of $165 million to $175 million
  • Adjusted net income to be in the range of $110 million to $120 million

Headwinds

  • Interest expense to be in the range of $22 million to $26 million
  • Capital expenditures to be in the range of $8 million to $12 million

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 Q3 2023

Historical avgQ3 2023

-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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