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Shoals Technologies Group , Inc. (NASDAQ:SHLS), a semiconductor company with $399.21 million in annual revenue and a solid financial health rating according to InvestingPro, announced on Monday that it has changed its independent registered public accounting firm. The company maintains a healthy current ratio of 2.33, indicating strong ability to meet short-term obligations. The company’s Audit Committee informed BDO USA, P.C. ("BDO") of their dismissal effective immediately. The dismissal follows a period during which there were no disagreements or reportable events between Shoals Technologies and BDO, as per regulatory definitions.
The audit reports for the fiscal years ending December 31, 2024, and December 31, 2023, provided by BDO to Shoals Technologies did not contain any adverse opinions or disclaimers and were not qualified or modified regarding uncertainties, audit scope, or accounting principles.
Concurrently, the company has appointed Ernst & Young LLP ("EY") as its new independent registered public accounting firm to audit its consolidated financial statements for the fiscal year ending December 31, 2025. Prior to the appointment, the company had not consulted with EY on any matters that would require disclosure under SEC regulations, including accounting principles or auditing matters.
Shoals Technologies provided BDO with a copy of the disclosure before filing the report with the SEC, as required by regulation. BDO agreed with the statements made by the company in a letter to the SEC dated March 11, 2025, which is included as an exhibit in the current report.
The company’s decision to change auditors comes without any reported dissatisfaction with BDO’s services or any known issues that would typically raise concerns about financial reporting or auditing processes. Such changes in a company’s auditing firm are subject to strict regulatory oversight and require transparent communication with shareholders and the public. For deeper insights into Shoals Technologies’ financial health and performance metrics, InvestingPro offers comprehensive analysis through its Pro Research Report, available as part of its coverage of 1,400+ US stocks.
This transition in certifying accountants is part of the corporate governance process and reflects the company’s right to select the auditor of its choice. The information provided in this article is based on Shoals Technologies Group’s recent SEC filing. Despite the stock’s significant decline of over 76% in the past year, InvestingPro analysis suggests the company is currently trading below its Fair Value, with 16 additional ProTips available to subscribers.
In other recent news, Shoals Technologies Group reported its fourth-quarter earnings, revealing adjusted earnings per share of $0.08, which fell short of analyst expectations by $0.01. However, the company exceeded revenue projections, reporting $107 million against the expected $101.98 million, though this was an 18% decrease from the previous year. Looking ahead, Shoals provided guidance for 2025 that did not meet Wall Street’s expectations, forecasting first-quarter revenue between $70-80 million, significantly below the consensus estimate of $109.04 million. For the full year 2025, the company anticipates revenue between $410-450 million, compared to analyst predictions of $443.2 million.
CEO Brandon Moss attributed the cautious outlook to disruptions in the U.S. utility-scale solar market, citing factors such as political changes and supply chain issues. In response to these developments, Oppenheimer analyst Colin Rusch reiterated an Outperform rating with a $10.00 price target, noting that Shoals’ backlog growth was a positive sign. Meanwhile, Jefferies analyst Julian Dumoulin-Smith adjusted the price target for Shoals Technologies, lowering it to $3.40 from $4.60, while maintaining a Hold rating. Dumoulin-Smith expressed concerns about the company’s near-term outlook, despite recognizing potential growth opportunities in international markets and the commercial and industrial sectors.
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