Nextracker (NXT) Q4 2024 Exceeds Revenue Expectations

Key Highlights:

* Revenue: $679.4 million (beat analyst estimates by 3.6%)
* Adjusted EPS: $1.03 (74.1% beat)
* Adjusted EBITDA: $186.4 million (47.5% beat)

Company Overview:

Nextracker (NXT) is a leading provider of solar tracker systems, enabling solar panels to follow the sun.

Financial Performance:

* Full-year revenue guidance maintained at $2.85 billion
* Full-year Adjusted EPS guidance raised to $3.85 at the midpoint
* Operating margin improved to 22.1%
* Free cash flow margin rose to 19.9%
* Backlog reached $4.5 billion, up 27.3% year-over-year

Sales Growth:

* Long-term sales growth rate of 23.4%
* Annualized revenue growth of 23.3% over the past two years
* Backlog growth indicates strong demand

Operating Margin and Earnings:

* Average operating margin of 13.3% over the past five years
* Operating margin expanded by 3.7 percentage points in the past five years
* EPS grew at a 120% compounded annual growth rate over the past two years
* Q4 EPS of $1.03 exceeded estimates by 74.1%

Analyst Outlook:

* Sell-side analysts expect 12.7% revenue growth over the next 12 months
* Full-year EPS of $3.08 is forecasted, representing a 5.6% increase

Conclusion:

Nextracker's Q4 results demonstrate strong financial performance, driven by solid demand and operational efficiency. The raised guidance and analyst projections suggest continued growth potential. However, the missed backlog indicates potential for weaker demand in the future. Overall, Nextracker's earnings report showcases a solid "beat-and-raise" quarter with key areas of upside.