Shares of Shoals Technologies (NASDAQ:SHLS) are on the rise today after the electrical balance of system (EBOS) solutions provider announced better-than-anticipated first-quarter numbers.
Revenue surged 54.6% year-over-year to $105.1 million, rising past estimates by $7.5 million. EPS at $0.14 too outperformed expectations by $0.05. During the quarter, Shoals’ system solutions sales nearly doubled year-over-year while its gross margin witnessed a 720 basis point expansion to 45.9%.
Furthermore, the company’s order backlog grew at a healthy 75% year-over-year to $527.5 million. The company is witnessing robust demand for its solar products and buoyed by a favorable business environment, has upped its full-year outlook.
Revenue for the year is now anticipated between $480 million and $510 million (prior guidance between $470 million and $510 million). Adjusted net income is seen landing between $92 million and $102 million (versus $87 million to $97 million previously).
Overall, the Street has a $29.38 consensus price target on SHLS pointing to a 50% potential upside in the stock. That’s on top of a 60.5% rally in the stock over the past year.
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