Shoals Technologies Group, Inc. (NASDAQ:SHLS) shares were trading more than 12% higher in the afternoon despite the company’s reported Q1 earnings results, with EPS of $0.02 coming in worse than the consensus estimate of $0.07. Revenue was $68 million, compared to the consensus of $70.38 million.

Analysts at Oppenheimer said they are encouraged to see the company's new capacity coming online and new product development tracking as scheduled.

The analysts continue to expect the next 12 months to be crucial for the company in establishing its market position in the EU and Latin America, which could dictate its 3–5-year growth trajectory.

Given product is now certified, the analysts believe completing customer adoption will help signal growth in these geographies and understand the process is going well.

The company provided its Q2/22 outlook, expecting revenue in the range of $300-325 million, compared to the consensus estimate of $325.7 million.