Shoals Technologies Group (NASDAQ:SHLS) Shares Gap Down After Earnings Miss

Shoals Technologies Group, Inc. (NASDAQ:SHLS)’s stock price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $9.90, but opened at $8.28. Shoals Technologies Group shares last traded at $7.7250, with a volume of 5,362,831 shares trading hands.

The company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.04). Shoals Technologies Group had a return on equity of 8.50% and a net margin of 7.66%.The company had revenue of $148.33 million for the quarter, compared to analyst estimates of $144.52 million. During the same quarter last year, the business earned $0.08 earnings per share. The company’s revenue was up 38.6% on a year-over-year basis.

Key Shoals Technologies Group News

Here are the key news stories impacting Shoals Technologies Group this week:

• Positive Sentiment: Record top-line growth and backlog — Q4 revenue rose 38.6% YoY to $148.3M and the company reported a record backlog & awarded orders of $747.6M, supporting future revenue visibility. Shoals Q4 press release
• Positive Sentiment: New commercial win in critical power for AI data centers — partnership with ON.energy to deploy systems for a leading AI data‑center operator signals diversification into high-growth AI infrastructure use cases. Shoals and ON.energy deployment
• Positive Sentiment: Revenue guidance above consensus — Q1 revenue guide ($125M–$135M) and FY revenue guide ($560M–$600M) are higher than Street revenue estimates, showing demand remains strong. Guidance in press release
• Neutral Sentiment: Earnings materials and call available — Management provided slides and an earnings call transcript that detail drivers (tariffs, mix, litigation). Useful for digging into cost assumptions and backlog conversion timelines. Q4 slide deck
• Neutral Sentiment: Market/context coverage — Multiple outlets note the stock reacted to both earnings and broader Nasdaq futures sentiment; watch overall tech/renewables flow for continued volatility. Market reaction piece
• Negative Sentiment: EPS miss — Reported EPS of $0.10 missed consensus $0.14, triggering immediate negative investor reaction despite revenue strength. Zacks earnings note
• Negative Sentiment: Margin pressure from tariffs and one‑time costs — Gross margin fell ~600 bps to ~31.6% and operating margin narrowed; management cited higher material costs and litigation expense. That erosion, if persistent, will weigh on profitability multiples. Seeking Alpha margin analysis
• Negative Sentiment: Adjusted EBITDA guide missed expectations — Q1 adjusted EBITDA guidance (~$18.5M) came in below analyst models, which appears to be the main catalyst for heavy selling and higher intraday volume. Earnings review and guidance impact

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. TD Cowen reissued a “buy” rating on shares of Shoals Technologies Group in a report on Tuesday. Wells Fargo & Company lifted their price objective on shares of Shoals Technologies Group from $6.00 to $10.00 and gave the stock an “equal weight” rating in a research note on Thursday, November 6th. Zacks Research downgraded shares of Shoals Technologies Group from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Morgan Stanley reaffirmed an “equal weight” rating and set a $9.50 target price (down from $11.00) on shares of Shoals Technologies Group in a report on Tuesday, December 16th. Finally, UBS Group lifted their price target on shares of Shoals Technologies Group from $9.00 to $12.00 and gave the company a “buy” rating in a research report on Wednesday, November 5th. Eleven analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Shoals Technologies Group has an average rating of “Moderate Buy” and an average target price of $9.40.

Insider Activity at Shoals Technologies Group

In other news, CFO Dominic Bardos sold 4,170 shares of the business’s stock in a transaction on Friday, December 5th. The stock was sold at an average price of $7.83, for a total transaction of $32,651.10. Following the completion of the transaction, the chief financial officer owned 412,289 shares of the company’s stock, valued at approximately $3,228,222.87. The trade was a 1.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.52% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of SHLS. Nisa Investment Advisors LLC lifted its holdings in shares of Shoals Technologies Group by 449.1% during the second quarter. Nisa Investment Advisors LLC now owns 7,226 shares of the company’s stock worth $31,000 after purchasing an additional 5,910 shares during the period. GAMMA Investing LLC raised its position in Shoals Technologies Group by 57.7% during the 4th quarter. GAMMA Investing LLC now owns 3,756 shares of the company’s stock worth $32,000 after purchasing an additional 1,375 shares during the last quarter. USA Financial Formulas acquired a new position in Shoals Technologies Group during the 4th quarter worth about $49,000. Savant Capital LLC acquired a new position in Shoals Technologies Group during the 2nd quarter worth about $50,000. Finally, Ethic Inc. bought a new stake in shares of Shoals Technologies Group in the 2nd quarter valued at about $54,000.

Shoals Technologies Group Trading Down 30.9%

The company has a market cap of $1.14 billion, a price-to-earnings ratio of 34.20, a PEG ratio of 0.84 and a beta of 1.70. The firm has a 50 day moving average price of $9.41 and a two-hundred day moving average price of $8.52. The company has a quick ratio of 1.53, a current ratio of 2.19 and a debt-to-equity ratio of 0.21.

Shoals Technologies Group Company Profile

Shoals Technologies Group, Inc is a leading provider of electrical balance-of-system (BOS) solutions for the solar energy industry. The company designs, engineers and manufactures a comprehensive portfolio of products, including junction boxes, combiner boxes, cable assemblies, power distribution units and monitoring systems. These components are critical to interconnecting photovoltaic modules, optimizing energy output and ensuring safe, reliable performance across solar installations.

Founded in 1996 and headquartered in Portland, Tennessee, Shoals has grown its manufacturing and operations footprint to serve customers around the globe.