Overview

* Shoals Q3 revenue grows 32.9% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 misses analyst estimates

* Company reports record backlog and awarded orders of $720.9 mln

Outlook

* Shoals expects Q4 revenue between $140.0 mln and $150.0 mln

* Company forecasts full-year revenue of $467.0 mln to $477.0 mln

* Shoals anticipates full-year adjusted EBITDA of $105.0 mln to $110.0 mln

Result Drivers

* STRONG DEMAND - Revenue growth driven by strong demand for products and market share capture initiatives

* BACKLOG GROWTH - Record backlog and awarded orders indicate strong future demand

* GROSS MARGIN IMPROVEMENT - Increase in gross margin partly due to absence of prior-year warranty expenses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $135.80 $131.40

Revenue mln mln (15

Analysts

)

Q3 Miss $0.12 $0.13

Adjusted (14

EPS Analysts

)

Q3 EPS $0.07

Q3 $21 mln

Adjusted

Net

Income

Q3 $32 mln

Adjusted

EBITDA

Q3 Gross 37%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the electrical components & equipment peer group is "buy"

* Wall Street's median 12-month price target for Shoals Technologies Group Inc ( SHLS ) is $9.00, about 14.9% below its November 3 closing price of $10.34

* The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)