How did NXT's Q4 2024 EPS outperform forecasts?

Nextracker's (NXT) Q4 2024 EPS outperformed forecasts due to several key factors: 1. **Revenue Beat**: Nextracker reported a revenue of $679.4 million for Q4 2024, which exceeded analysts' expectations of $655.4 million. This 4.4% year-on-year decline was accompanied by a 3.6% beat, indicating strong revenue performance. 2. **Operating Income Outperformance**: The company's adjusted operating income (EOI) for the quarter was $186.4 million, surpassing analyst estimates of $126.3 million. This represents a 27.4% margin, which is a significant upside from expectations. 3. **Profit Margin Improvements**: Nextracker's gross margin was 22.1%, up from 20.9% in the same quarter of the previous year. The free cash flow margin also improved, increasing to 19.9% from 8.8% year-over-year. 4. **Backlog and Demand Dynamics**: The company's backlog reached a record high of over $4.5 billion, driven by strong demand across key regions and new product offerings. This strong backlog indicates continued growth potential. In summary, Nextracker's Q4 2024 EPS outperformance can be attributed to revenue beats, operating income outperformance, profit margin improvements, and strong backlog and demand dynamics. These factors collectively contributed to the company's robust financial performance, exceeding market expectations.