Nextracker Stock Jumps as Demand for Solar Tracking Solutions Drives Earnings Beat

Nextracker (NXT) shares jumped nearly 13% in extended trading Tuesday after the maker of intelligent solar tracker solutions topped Wall Street’s quarterly estimates amid growing demand in U.S. and global markets.

For the fiscal fourth quarter ending March 31, the Fremont, California-based company, which spun off from diversified manufacturer Flex (FLEX) in January, reported adjusted earnings of 96 cents per share, powering past the 78-cents-a-share forecast expected by analysts. Revenue in the period of $737 million jumped 42% from the prior year’s corresponding quarter and comfortably surpassed the FactSet view of $683.2 million.

In addition, Nextracker recorded a backlog of $4 billion in the 2024 fiscal year, driven by robust demand in U.S. and international markets. It also noted that it had surpassed 100 gigawatts of global shipments since its inception.

Looking ahead, the company sees annual net sales of between $2.8 billion and $2.9 billion, up from $2.5 billion in the last year, but falling just shy of the $2.89 billion consensus.

“We’ve accelerated our pace of product innovation, scaled global revenue and supply chain, more than doubled our profits from the prior year, and exceeded all elements of our full year guidance,” Nextracker founder and CEO Dan Shugar said in the company’s earnings statement.

The company’s upbeat financial results point to a potential turnaround in the embattled solar sector which has remained under a cloud over the past 18 months due to high interest rates curbing consumer demand for solar energy solutions. 

Monitor This Price Level Amid Earnings-Driven Buying

Nextracker shares trended mostly higher for 12 months after making their Nasdaq debut in early February last year. However, since March the stock has undergone a significant 30% correction, with the price falling below the 200-day moving average in the leadup to the company’s quarterly results. Despite the lackluster recent price action, the shares sit poised to open sharply higher Wednesday morning in a move that could swing sentiment back in favor of the bulls. 

Amid earnings-driven upside, investors should keep a close eye of the $47 level, an area where the price encounters key overhead resistance from a horizontal line connecting three chart peaks over the past nine months. A convincing close above this important technical level could see the stock close the early February gap around $52.

Nextracker shares gained 12.8% to $48.50 in after-hours trading Tuesday.

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