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Nextracker (NASDAQ:NXT) +22.6% pre-market Thursday after easily beating FQ3 adjusted earnings and revenue estimates, and raising guidance for FY 2024.
Q4 adjusted EPS came in at $0.96, routing the $0.49 analyst consensus, revenues rose 38% Y/Y to $710M, and adjusted EBITDA more than doubled to $168M, in a quarter marked by record backlog and continued demand strength globally.
Nextracker (NXT) boasted a quality balance sheet with total liquidity of ~$800M, operating cash flow of $317M and adjusted free cash flow of $314M YTD.
The company hiked guidance for its fiscal year, which ends in March, now seeing adjusted earnings of $2.65/share at the midpoint of its guidance range, up from its previous outlook of $2.05/share at the midpoint, on sales of $2.45B at the midpoint, up from $2.35B at the midpoint of its prior range, and adjusted EBITDA of $487.5M at the midpoint, raised from previous guidance of $415m at the midpoint.
"Nextracker achieved a record third quarter, outperforming across revenue, profit and backlog, which reflects strong execution and spotlights our capability to meet customer requirements," CEO Dan Shugar said.
Analysts highlighted Nextracker's (NXT) record backlog amid strong demand, and potential for further growth; J.P. Morgan raised its stock price target to $73 from $61, noting the backlog reached a new record thanks to broad-based strength in booking.
Truist Securities, Piper Sandler, Cantor and Barclays all raised their stock PTs, to $70, $63, $62 and $55, respectively.