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Nextracker (NXT) to Report Q1 Earnings: What's in the Cards?

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Nextracker Inc. (NXT - Free Report) is slated to report first-quarter fiscal 2025 results on Aug 1, after market close.   

In the last reported quarter, the company delivered an earnings surprise of 62.71%. It also delivered a trailing four-quarter average earnings surprise of 78.83%.

Factors to Note

Solid deliveries of its solar tracking products, backed by growing solar demand, are likely to have boosted Nextracker’s top-line performance in the fiscal first quarter.

Region-wise, we expect NXT to have witnessed solid sales growth from the United States as well as the international markets of India, Australia and Europe.

Nextracker Inc. Price and EPS Surprise

Nextracker Inc. Price and EPS Surprise

Nextracker Inc. price-eps-surprise | Nextracker Inc. Quote

In terms of products, soaring bookings for the company’s NX Horizon tracker, Horizon XTR and NX Navigator product lines, along with the increased adoption of its TrueCapture software platform, backed by solid solar installation demand, must have bolstered NXT’s revenues. 

The Zacks Consensus Estimate for revenues is pegged at $618.1 million, indicating a 28.9% improvement from the prior-year quarter’s reported number.

As Nextracker continues to increase its investments in research and development (R&D), with an emphasis on innovation, we may expect its fiscal first-quarter results to reflect higher R&D expenses. This might have affected its earnings to some extent.  

Nevertheless, solid revenue growth, along with benefits from lowering material and logistics costs, is likely to have bolstered NXT’s overall bottom-line performance. The favorable impact of the 45X credit, established as part of the Inflation Reduction Act (IRA), must have added an impetus to NXT’s quarterly gross profit, thereby boosting its earnings growth. 

The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 66 cents per share, implying an improvement of 37.5% from the prior-year quarter’s reported figure.

During the to-be-reported quarter, NXT bought Ojjo, which is a renewable energy company specializing in foundation technology and services used in utility-scale ground-mount applications for solar power generation. This acquisition is expected to have enhanced Nextracker’s addressable market opportunity for challenging soil conditions. We may receive more updates on favorable impacts from this acquisition, once NXT releases its quarterly results.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Nextracker this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Earnings ESP: NXT’s Earnings ESP is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Nextracker currently carries a Zacks Rank of 4 (Sell).

Stocks to Consider

Below, we have discussed some promising solar players that have the right combination of elements to beat on earnings this reporting cycle.

Sunrun (RUN - Free Report) is slated to report second-quarter 2024 results on Aug 6, before market open. It has an Earnings ESP of +173.40% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for second-quarter earnings is pegged at a loss of 33 cents per share. The company delivered an average earnings surprise of 45.37% in the trailing four quarters. 

Array Technologies (ARRY - Free Report) is expected to report second-quarter 2024 results on Aug 8, after market close. It has an Earnings ESP of +68.42% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for second-quarter sales is pinned at $230.4 million. The company delivered an average earnings surprise of 144.80% in the trailing four quarters.

Shoals Technologies (SHLS - Free Report) is slated to report second-quarter 2024 results on Aug 6, after market close. It has an Earnings ESP of +5.88% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for second-quarter sales is pegged at $89.8 million. The company delivered an average earnings surprise of 4.99% in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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