Shoals Technologies Group, Inc. (NASDAQ:SHLS) shares surged more than 21% on Tuesday following the company’s reported Q3 results, with EPS of $0.10 coming in better than the Street estimate of $0.08. Revenue was $90.8 million, beating the Street estimate of $83.03 million.
With the company posting strong numbers across the board including award and bookings growth of $144 million in the quarter, analysts at Oppenheimer said they believe investors will be increasingly confident in the company's growth trajectory.
The analysts believe the value of shortened construction timelines and skilled labor savings are driving outsized growth, supplementing a strong demand environment of solar where higher electricity prices are outpacing costs from inflation and increased interest rates.
The company provided its fiscal 2022 outlook, expecting revenue in the range of $310-325 million, compared to the Street estimate of $313 million. Adjusted EBITDA guidance was raised to the range of $80-$86 million from $77-$86 million.