Nextracker’s Anticipated Earnings Report Sparks Interest
$NXT
Next Plc. (LSE:NXT), a prominent British multinational clothing, footwear and home products retailer, has recently made headlines with its robust financial performance and strategic acquisitions. The company reported a significant increase in online sales, which has bolstered its overall revenue amidst a challenging retail environment. Additionally, the corporation has expanded its portfolio by acquiring a majority stake in the fashion brand Reiss, aiming to diversify its offerings and strengthen its market position. This strategic move underscores Next’s commitment to growth and innovation in the competitive retail sector.
Nextracker Inc. (NASDAQ:NXT), a prominent player in the solar energy equipment sector, has garnered significant attention due to its consistent performance in surpassing earnings estimates. The company, known for its innovative solar tracking solutions, has demonstrated a robust track record, particularly in the last two quarters. Nextracker’s recent earnings surprises have been noteworthy, with an average surprise of 93.55%. In the last reported quarter, the company posted earnings of $0.96 per share, significantly higher than the Zacks Consensus Estimate of $0.49 per share, marking a surprise of 95.92%. The previous quarter also saw the company outperform expectations, delivering earnings of $0.65 per share against an anticipated $0.34, resulting in a surprise of 91.18%.
The company’s ability to consistently exceed earnings expectations has led to upward revisions in analyst estimates. Nextracker’s Earnings ESP (Expected Surprise Prediction) currently stands at +9.80%, indicating that analysts have recently become more optimistic about the company’s earnings prospects. This positive sentiment, combined with Nextracker’s Zacks Rank of #3 (Hold), suggests that another earnings beat may be on the horizon. The company’s next earnings report is scheduled for May 14 and analysts are projecting earnings of $0.59 per share, reflecting a year-over-year increase of 180.95%. Additionally, revenue is expected to reach $681.03 million, a 31.37% improvement from the same quarter of the previous year.
Nextracker’s performance has been bolstered by solid deliveries of its products in both domestic and international markets, including the Middle East, India and Africa. The company has also seen increased contract bookings from international customers in regions such as India, Australia, Saudi Arabia and Spain, contributing to its revenue growth. The rising demand for Nextracker’s NX Horizon tracker, XTR and Hail Pro product lines, along with the adoption of its TrueCapture software platform, has further driven revenue. The Zacks Consensus Estimate for the company’s revenues is pegged at $681 million, indicating a 31.4% improvement from the prior quarter’s reported number. Nextracker continues to invest in research and development (R&D) to lower the levelized cost of solar energy for its customers.
The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $0.59 per share, implying an improvement of 181% from the earlier quarter’s reported figure. The company’s cash flow is also expected to have reflected favorable year-over-year growth, supported by strong net working capital management, customer deposits and higher EBITDA. In the latest trading session, Nextracker closed at $46.02, marking a -1.86% move from the previous day.
This move lagged behind the S&P 500’s daily gain of 0.13%. Over the past month, the stock has fallen by 8.04%, underperforming the Oils-Energy sector’s loss of 3.47% and the S&P 500’s loss of 0.35%. Analysts and market participants will be closely monitoring Nextracker’s performance in its upcoming earnings disclosure. The company’s earnings report is set to go public on May 14, with an expected EPS of $0.59, signifying a 180.95% increase compared to the same quarter of the previous year. The latest consensus estimate predicts revenue of $681.03 million, indicating a 31.37% increase compared to the same quarter of the previous year.
Recent changes to analyst estimates for Nextracker typically reflect the latest short-term business trends. Consequently, upward revisions in estimates express analysts’ optimism regarding the company’s business operations and its ability to generate profits. Based on empirical research, these estimated revisions are directly related to near-term stock moves. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate for Nextracker has moved 3.18% lower.
Currently, the company holds a Zacks Rank of #3 (Hold). In terms of valuation, Nextracker is currently trading at a Forward PE ratio of 14.67, which signifies a premium compared to the industry average Forward PE of 13.54. The company’s PEG ratio stands at 0.31, taking into account the expected earnings growth rate. As of the close of trade yesterday, the Solar industry held an average PEG ratio of 0.33. The Solar industry is part of the Oils-Energy sector, which carries a Zacks Industry Rank of 175, placing it within the bottom 31% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Nextracker’s consistent performance in surpassing earnings estimates, coupled with positive revisions in analyst estimates, positions the company favorably ahead of its upcoming earnings report. The company’s strong product deliveries, increased contract bookings and rising demand for its innovative solutions have contributed to its robust revenue growth.
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