PORTLAND, Tenn. - Shoals Technologies Group, Inc. (NASDAQ:SHLS) reported third quarter revenue that beat analyst expectations and raised its full-year revenue guidance, sending shares up 1.5% in premarket trading on Tuesday.
The electrical balance of systems solutions provider posted revenue of $102.2 million for the quarter, surpassing the consensus estimate of $98.86 million. However, adjusted earnings per share came in at $0.08, missing expectations of $0.10.
Revenue declined 24% YoY, which the company attributed to previously discussed project delays. Despite the revenue drop, Shoals raised its full-year 2024 revenue outlook to $390-400 million, up from its prior guidance and ahead of the $383.3 million analysts were expecting.
"I'm pleased with the robust engagement we experienced in the third quarter. Customers remain cautious yet constructive as we head into the end of 2024 and look into 2025," said CEO Brandon Moss.
For the fourth quarter, Shoals forecasts revenue between $97-107 million, also topping the consensus of $93.54 million.
The company noted quoting volume across its customer base increased almost 50% YoY to record levels. However, Moss said uncertainty around interest rates, interconnection queues, and supply chain issues have elongated sales cycles throughout the year.
Shoals ended the quarter with a backlog and awarded orders of $596.6 million, down 5.8% YoY and 7.1% sequentially.
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