Solar energy systems company Shoals (NASDAQ:SHLS) announced better-than-expected revenue in Q1 CY2025, but sales fell by 11.5% year on year to $80.36 million. Guidance for next quarter’s revenue was better than expected at $105 million at the midpoint, 0.9% above analysts’ estimates. Its non-GAAP profit of $0.03 per share was in line with analysts’ consensus estimates.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Shares of solar energy systems company Shoals (NASDAQ:SHLS)
jumped 14.9% in the afternoon session after the company reported strong first quarter 2025 results which beat analysts' revenue and EBITDA expectations. In addition, next quarter revenue guidance and full-year EBITDA guidance topped Wall Street's estimates. The size of its future work pipeline, orders in hand, grew 5% to $645 million, most of which is set to turn into sales soon. Revenue did fall from the previous year, mainly due to changes in pricing and the type of products sold, but that shortfall was less important than the outlook. Overall, we think this was a solid quarter with some key areas of upside.
Solar energy systems company Shoals (NASDAQ:SHLS) reported Q1 CY2025 results topping the market’s revenue expectations, but sales fell by 11.2% year on year to $80.63 million. On top of that, next quarter’s revenue guidance ($105 million at the midpoint) was surprisingly good and 10.4% above what analysts were expecting. Its non-GAAP profit of $0.03 per share was in line with analysts’ consensus estimates.
Shoals has gotten torched over the last six months - since October 2024, its stock price has dropped 30.9% to $3.38 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
Looking back on renewable energy stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Array (NASDAQ:ARRY) and its peers.
A number of stocks fell in the afternoon session after stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for all countries. This reminded markets that the global trade environment remained volatile, limiting the potential for sustained gains.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Shoals (NASDAQ:SHLS) and the rest of the renewable energy stocks fared in Q4.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how renewable energy stocks fared in Q4, starting with EVgo (NASDAQ:EVGO).
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
