Nextracker, the solar industry giant renowned for manufacturing solar trackers, has left analysts astounded with its stellar performance in the third quarter of fiscal year 2024 (Q3 FY24). The California-based company witnessed a remarkable surge of over 19% in its NXT stock, reaching $53.94 in after-hours trading, following the release of its extraordinary financial results.
In Q3 FY24, Nextracker not only exceeded expectations but shattered them, reporting an impressive adjusted earnings per share (EPS) of $0.96 on sales totaling $710 million. This surpassed analysts' forecasts of $0.49 per share on sales of $619 million, marking a substantial 38% year-over-year increase in revenue.
Nextracker's dominance in the solar energy sector stems from its pivotal role as the leading manufacturer of solar trackers—innovative racking systems that enable solar panels to pivot and track the sun. Additionally, the company offers cutting-edge software designed to optimize the output from solar arrays. CEO Dan Shugar, in a statement, underscored Nextracker's global leadership in trackers and expressed optimism for sustained growth.
Buoyed by its exceptional performance, Nextracker elevated its guidance for the entire fiscal year ending in March. The company now anticipates sales reaching $2.45 billion, a substantial upswing from its previous estimate of $2.35 billion. Furthermore, Nextracker revised its projected adjusted EPS to $2.65 per share, based on the midpoint of its range—a significant leap from the previous midpoint estimate of $2.05 per share.
Having completed its initial public offering (IPO) in February 2022, Nextracker's NXT stock has more than doubled from its IPO price of $24. Despite challenges faced by other solar stocks amid rising interest rates, Nextracker has emerged as a standout performer in the MarketSmith Energy-Solar category.
Nextracker's outstanding Q3 FY24 results and the subsequent upward revision of its fiscal year guidance have cemented its status as a frontrunner in the solar energy sector. As the company continues to experience growth and success, its stock performance is poised to remain a focal point in the market in the upcoming months.