Nextracker, a company specializing in solar tracking solutions, saw a surge in its stock price during after-hours trading on Tuesday. This was in response to the company’s quarterly earnings report, which exceeded expectations set by Wall Street. Nextracker’s strong performance was driven by a high demand for its products in both the U.S. and international markets. The company also announced a backlog of $4 billion for the 2024 fiscal year, indicating a robust demand for its solutions. Nextracker’s shares rose by almost 13% after the earnings report was released. The company’s quarterly revenue of $737 million represented a 42% increase compared to the same period last year and surpassed the FactSet estimate of $683.2 million. Nextracker also highlighted that it had shipped over 100 gigawatts of its products globally since its inception. Looking ahead, the company expects annual net sales to be between $2.8 billion and $2.9 billion, showing growth from the previous year’s $2.5 billion, but falling slightly short of the consensus estimate of $2.89 billion.
According to Nextracker founder and CEO Dan Shugar, the company has achieved significant milestones, including increased product innovation, global revenue and supply chain expansion, and a substantial increase in profits compared to the previous year. These positive financial results indicate a potential turnaround in the struggling solar sector, which has faced challenges due to high interest rates dampening consumer demand for solar energy solutions.
Nextracker shares experienced an upward trend for about a year after their Nasdaq debut in February last year. However, the stock has recently undergone a significant correction of 30%, falling below the 200-day moving average prior to the company’s quarterly results. Despite this recent decline, the shares are expected to open higher on Wednesday, potentially shifting market sentiment in favor of the bulls.
Investors should closely monitor the $47 level, as it represents a key resistance point for the stock. A convincing close above this level could lead to the stock closing the gap that occurred in early February, around $52.
After-hours trading on Tuesday saw Nextracker shares rise 12.8% to $48.50.
Please note that the comments, opinions, and analyses expressed in this article are for informational purposes only and do not constitute financial advice.