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Nextracker Set to Report Q2 Earnings: What's in the Cards?

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Nextracker Inc. (NXT - Free Report) is slated to report second-quarter fiscal 2025 results on Oct. 30, after market close.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In the last reported quarter, the company delivered an earnings surprise of 40.91%. It has a trailing four-quarter average earnings surprise of 72.68%.

Factors to Note Ahead of NXT’s Q2 Results

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

Region-wise, NXT is expected to have witnessed solid sales growth from the United States as well as the international market, particularly Europe.

Nextracker Inc. Price and EPS Surprise

Nextracker Inc. Price and EPS Surprise

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

In terms of product innovation, the company launched its agri PV solution and NX low carbon tracker in the fiscal first quarter and the NX Foundation Solution in the fiscal second quarter. These recent product innovations, along with several factory expansions that NXT undertook with its manufacturing partners, are likely to have favored its revenue performance.
 
The Zacks Consensus Estimate for revenues is pegged at $606.1 million, indicating a 5.7% improvement from the prior-year quarter’s figure.

As Nextracker continues to increase its investments in research and development (R&D), with an emphasis on innovation as well as development, including software enhancements through additional headcount, its fiscal second-quarter results are likely to reflect higher R&D expenses. This, along with increases in logistics and freight costs in recent times, is expected to have partially hurt NXT’s bottom-line performance.
 
Nevertheless, solid revenue growth is likely to have bolstered NXT’s overall bottom-line performance. The reduction in the cost of sales for 45X credits earned on components manufactured in the United States is anticipated to have added an impetus to its quarterly gross profit, thereby boosting its earnings growth. Also, structural enhancements implemented by NXT to its overall margin structure, including maintenance of pricing discipline and expansion of its global supply chain, are expected to have benefited its bottom line.
 
The Zacks Consensus Estimate for earnings is pegged at 66 cents per share, implying an improvement of 1.5% from the prior-year quarter’s figure.

What the Zacks Model Unveils for NXT

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 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

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

SolarEdge Technologies (SEDG - Free Report) is slated to report third-quarter results on Nov. 6, after market close. It has an Earnings ESP of +19.62% and a Zacks Rank of 3 at present.

The stock boasts a long-term earnings growth rate of 2.4%. The Zacks Consensus Estimate for its sales is pinned at $269.8 million.
 
Sunrun (RUN - Free Report) is slated to report third-quarter 2024 results on Nov. 7, after market close. It has an Earnings ESP of +12.57% and a Zacks Rank of 2 at present.

The consensus estimate for earnings is pegged at a loss of 16 cents per share. The company delivered an average earnings surprise of 79.87% in the trailing four quarters.

Helmerich & Payne, Inc. (HP - Free Report) is slated to report third-quarter results on Nov. 13, after market close. It has an Earnings ESP of +1.89% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for sales is pegged at $687.2 million, indicating year-over-year growth of 4.2%. The company delivered an average earnings surprise of 14.79% in the trailing four quarters.

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