Nextracker (NASDAQ:NXT) provides solar tracker systems. It is the first U.S. company to ship 100% domestic-content solar trackers. NXT shares have surged 21.4% in pre-market trading after a stellar Q3 FY25 earnings report. The company also raised its profit guidance and beat estimates.
Nextracker reported $679.4 million in Q3 revenue. This is down 4.4% year-over-year but is above consensus estimates of $650.7 million. The company’s adjusted EPS also came in at $1.03, beating estimates of $0.59 by 74.6%. GAAP EPS came in at $0.79 and beat estimates of $0.58 by 36%.
Moreover, GAAP gross margin is up significantly to 35.5% from 29.5% in the same quarter last year. Adjusted EBITDA margin is at 27%.
The backlog exceeded $4.5 billion and is up 54.7% over the past two years. Manufacturing has also been expanded to 50 GW/year capacity. Plus, the cash position is solid. The company has $693.5 million in cash and cash equivalents, with $418 million in OCF year-to-date.
Wall Street’s reaction to its earnings has been very bullish. It was bullish even before the earnings report, but the consensus has shifted more bullish after the earnings report. Barclays lifted their price target from $47 to $60. Truist also raised its price target, and the current highest price target on the stock is $69.
The consensus price target is now at $52.
There will likely be a slew of more upgrades and reiterations of price targets over the coming days. These could push the stock even higher.
Things look very bullish for Nextracker (NXT) right now. The stock is up significantly and it is seeing more bullish momentum as analysts raise their price targets. If the momentum continues and the company meets its guidance next quarter, there is a good chance the party will go on as you are still paying some 12 times earnings.