Shoals Technologies Group, Inc. (NASDAQ:SHLS) shares are trading lower on Thursday. On Wednesday, several analysts lowered the price target for the company following mixed fourth-quarter earnings reported this week.
• Shoals Technologies Group shares are sliding. What’s weighing on SHLS shares?
Earnings Snapshot
Shoals reported quarterly adjusted EPS of 10 cents per share, which missed the consensus estimate of 14 cents per share.
The company reported sales of $148.3 million, beating the analyst consensus estimate of $145.4 million.
As of Dec. 31, 2025, backlog and awarded orders stood at $747.6 million.
The company sees first-quarter sales of $125 million-$135 million versus consensus of $119.286 million and FY26 sales of $560 million to $600 million (versus street view of $560.2 million).
Analysts Cautious
Needham analyst Sean Milligan maintained a Buy rating and lowered the price forecast from $14 to $12.
The analyst writes that Shoals shares fell sharply post-earnings as investors reacted negatively to the unexpected reset of the gross margin framework heading into 2026.
This overshadowed a solid revenue outlook and continued momentum in BESS and data center backlog, adds the analyst.
The analyst says the focus now shifts from the durability of growth to whether the revised 30%–35% gross margin range is temporary or reflects a more permanent reset.
Milligan writes that a recovery in sentiment will likely depend on clear sequential margin improvement from first-quarter trough levels through second-quarter to third-quarter, along with ongoing backlog expansion.
The analyst lowered the 2026 and 2027 EPS estimates from 47 cents and 56 cents to 36 cents and $46 cents, respectively.
Other analyst price revisions include:
- Roth Capital analyst Philip Shen cut the price target from $15 to $10.
- Morgan Stanley analyst Andrew Percoco slashed the price target from $9.50 to $8.50.
- Wells Fargo analyst Praneeth Satish trimmed the price target from $10 to $9.
- Barclays analyst Christine Cho cut the price target from $10 to $9.
SHLS Price Action: SHLS shares are down 7.08% at $6.37 at publication on Thursday.
Photo: Shutterstock