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Nextracker stock surges 8% on earnings, revenue beat

EditorRachael Rajan
Published 2024-05-14, 04:32 p/m
© Reuters.
NXT
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FREMONT, Calif. - Nextracker Inc. (NASDAQ: NXT) reported a robust financial performance for the fourth quarter, surpassing analyst expectations with an earnings per share (EPS) of $0.96, a significant $0.41 higher than the consensus estimate of $0.55.

Revenue also exceeded forecasts, coming in at $736.52 million against the anticipated $674.4 million. Following the announcement, the company's stock price soared by 8%, indicating a positive investor response to the earnings and revenue beat.

The solar tracker and software solutions provider not only achieved record revenue, up 42% YoY, but also reported a GAAP net income of $223 million, with a diluted EPS of $1.51. Adjusted EBITDA saw a remarkable 120% increase YoY, reaching $160 million, excluding IRA 45X tax credit benefits. The full fiscal year was marked by strong execution and significant growth, with a record backlog exceeding $4 billion, tripling in two years. Nextracker's CEO, Dan Shugar, highlighted the company's accelerated pace of product innovation, scaled global revenue and supply chain, and more than doubled profits from the prior year.

Looking ahead, Nextracker provided guidance for FY2025, projecting an EPS range of $2.89 to $3.09, which is slightly below the analyst consensus of $3.10. Revenue expectations are set between $2.8 billion and $2.9 billion, aligning closely with the consensus estimate of $2.875 billion. The midpoint of the guidance range suggests a conservative outlook from the company compared to market expectations.

Nextracker's achievements include being the first U.S. solar company to surpass 100 gigawatts of global shipments since its inception, underscoring its sustained leadership position in the market. The company's optimism for the future is rooted in the solar sector's acceleration as a primary source of new power generation in the U.S. and globally.

The company's financial success is attributed to robust demand in U.S. and international markets, the launch of three new products, and the expansion of 20 new or expanded U.S. partner manufacturing facilities since 2021. With a global annual supply capacity exceeding 50 gigawatts, including over 30 gigawatts in the U.S., Nextracker is well-positioned to capitalize on the growing demand for solar energy solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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