Solar tracker company Nextracker (NASDAQ: NXT) will be reporting earnings this Tuesday after market close. Here’s what you need to know.
Nextracker beat analysts’ revenue expectations by 11.3% last quarter, reporting revenues of $924.3 million, up 25.5% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
Is Nextracker a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Nextracker’s revenue to grow 17.4% year on year to $845.1 million, slowing from the 50.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.03 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nextracker has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 7.9% on average.
Looking at Nextracker’s peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Enphase delivered year-on-year revenue growth of 19.7%, beating analysts’ expectations by 1.3%, and Bel Fuse reported revenues up 26.3%, topping estimates by 10.1%. Enphase traded down 14.2% following the results while Bel Fuse was up 18.8%.
Read our full analysis of Enphase’s results here and Bel Fuse’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 6.8% on average over the last month. Nextracker is up 18.9% during the same time and is heading into earnings with an average analyst price target of $65.82 (compared to the current share price of $64.67).
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