Analysts Estimate Shoals Technologies Group (SHLS) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Shoals Technologies Group despite higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected on August 5, with an estimated EPS of $0.08, reflecting a -20% change year-over-year, while revenues are projected to be $104.44 million, up 5.2% from the previous year [3][4]. Estimate Revisions - The consensus EPS estimate has been revised 1.72% higher in the last 30 days, indicating a reassessment by analysts [4]. However, the Most Accurate Estimate is lower than the consensus, resulting in an Earnings ESP of -10.91%, suggesting a bearish outlook [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but the model is more reliable for positive readings [9][10]. Shoals Technologies currently has a Zacks Rank of 2, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Shoals Technologies was expected to post earnings of $0.04 per share but delivered only $0.03, resulting in a -25% surprise [13]. Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Industry Context - In the broader solar industry, First Solar is expected to report earnings of $2.68 per share, indicating a -17.5% year-over-year change, with revenues projected at $1.03 billion, up 1.9% [18][19]. First Solar also has a negative Earnings ESP of -5.23% and has surpassed EPS estimates just once in the last four quarters [20].