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Why Shoals Technologies Stock Is Exploding Higher

Benzinga · 11/15/2022 15:05

Shoals Technologies Group Inc (NASDAQ:SHLS) shares are trading higher by 25.10% to $28.11 Tuesday morning after the company reported better-than-expected third-quarter EPS and sales results. The company also raised the midpoint for its FY22 sales guidance.

What Happened?

Shoals Technologies reported quarterly earnings of 10 cents per share which beat the analyst consensus estimate of 8 cents. The company also reported quarterly sales of $90.82 million which beat the analyst consensus estimate of $83.07 million by 9%. This is a 52% increase over sales of $59.84 million in the same period last year.

Shoals Technologies also raised the low end of FY22 sales guidance from a range of as low as $300 million to as high as $325 million to a new range of $310 million to $325 million, versus the analyst consensus estimate of $312.66 million.

"Shoals had an exceptionally strong third quarter, delivering record revenue, gross profit and adjusted EBITDA. We grew revenues 52% year-over-year, with System Solutions revenue increasing 80% compared to the year-ago period which drove significantly higher gross margin," said Jason Whitaker, Chief Executive Officer of Shoals.

According to data from Benzinga Pro, SHLS has a 52-week high of $36.86 and a 52-week low of $9.58.