Is NXT's Q2 2025 EPS growth sustainable?

**Nextracker's Q2 2025 EPS growth appears to be sustainable** based on several key factors:

1. **Consistent Growth Trajectory**: Nextracker has demonstrated a strong growth trajectory in its financial performance, including a 29% year-over-year revenue increase in the first half of fiscal year 2025. This consistent growth indicates a strong business model and market demand for its products.
2. **Positive Analyst Ratings and Forecasts**: Analysts have provided positive ratings and forecasts for Nextracker, with recent coverage by RBC Capital initiating the stock with an "Outperform" rating and a $55 price target, suggesting confidence in the company's future performance. The average one-year price target as of March 4, 2025, is $55.97, indicating a 22.00% upside from the latest closing price.

3. **Strong Financial Performance in Q4**: Nextracker's Q4 CY2024 results exceeded market revenue expectations, with a 4.4% year-on-year decline in sales totaling $679.4 million, which was a 3.6% beat against analyst estimates. The company's non-GAAP profit of $1.03 per share was 74.1% above analysts' consensus estimates.
4. **Positive Market Outperformance**: Despite market fluctuations, Nextracker has outperformed the broader market, with recent stock movements exceeding the S&P 500's performance. This indicates strong investor confidence and market acceptance of the company's growth prospects.
5. **Strategic Positioning and Innovation**: Nextracker's focus on innovation and strategic expansion plans, coupled with its leadership in the solar tracking market, position it well for continued growth. The company's new products, such as NX Horizon and NX Foundation Solutions, are expected to drive project efficiency.

In conclusion, Nextracker's Q2 2025 EPS growth is supported by its strong financial performance, positive analyst ratings, strategic positioning, and innovative product offerings, making it a sustainable growth trajectory.