Nextpower (NASDAQ:NXT) Shares Gap Up After Strong Earnings

Key Points

• Nextpower shares gapped up after the company posted stronger-than-expected quarterly results, opening at $149.23 versus the prior close of $125.37.
• The company reported EPS of $1.05 versus estimates of $0.89 and revenue of $880.5 million versus expectations of $826.3 million, showing a solid earnings beat.
• Analysts turned more positive after the report, with several price target increases from firms like Susquehanna and Baird, though Nextpower’s FY2027 guidance was slightly below consensus and may temper enthusiasm.

Nextpower Inc. (NASDAQ:NXT - Get Free Report) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $125.37, but opened at $149.23. Nextpower shares last traded at $145.4280, with a volume of 1,900,647 shares changing hands.

The company reported $1.05 EPS for the quarter, beating the consensus estimate of $0.89 by $0.16. Nextpower had a return on equity of 32.01% and a net margin of 16.43%.The firm had revenue of $880.52 million for the quarter, compared to analyst estimates of $826.26 million. Nextpower has set its FY 2027 guidance at 4.210-4.590 EPS.

More Nextpower News

Here are the key news stories impacting Nextpower this week:

• Positive Sentiment: Susquehanna raised its price target on Nextpower to $161 from $136 and kept a positive rating, implying meaningful upside from current levels. Benzinga
• Positive Sentiment: Robert W. Baird increased its target to $156 from $133 and reiterated an outperform rating, adding to the bullish post-earnings tone. Benzinga
• Positive Sentiment: Nextpower reported fiscal Q4 results that beat expectations, with EPS of $1.05 versus $0.89 expected and revenue of $880.5 million versus $826.3 million estimated, reinforcing confidence in the business. Earnings report
• Positive Sentiment: The company also announced a definitive agreement to acquire advanced power conversion assets from Zigor Corporation and Apex Power, a move that could broaden its product lineup and support expansion into battery storage. Business Wire
• Neutral Sentiment: BMO Capital Markets raised its target to $125 from $113 but maintained a market perform rating, suggesting limited near-term upside from its view. Benzinga
• Neutral Sentiment: TD Cowen lifted its target to $135 from $105 but kept a hold rating, signaling a more cautious stance despite a higher valuation view. Tickerreport.com
• Negative Sentiment: Nextpower’s FY2027 guidance came in mixed versus expectations, with EPS guidance of 4.21 to 4.59 below the 4.60 consensus, which may temper enthusiasm around the beat-and-raise narrative. Business Wire

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on NXT. Needham & Company LLC boosted their target price on Nextpower from $103.00 to $138.00 and gave the stock a "buy" rating in a research note on Thursday, January 29th. KeyCorp reissued an "overweight" rating on shares of Nextpower in a report on Friday, March 13th. Jefferies Financial Group boosted their price objective on shares of Nextpower from $122.00 to $138.00 and gave the stock a "buy" rating in a research report on Tuesday, March 17th. Roth Mkm restated a "buy" rating on shares of Nextpower in a report on Wednesday. Finally, UBS Group lifted their price target on shares of Nextpower from $125.00 to $140.00 and gave the stock a "buy" rating in a research note on Wednesday, January 28th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Nextpower presently has a consensus rating of "Moderate Buy" and a consensus target price of $122.29.

Insider Buying and Selling at Nextpower

In other news, CEO Daniel S. Shugar sold 59,456 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $105.17, for a total value of $6,252,987.52. Following the completion of the sale, the chief executive officer directly owned 746,339 shares of the company's stock, valued at approximately $78,492,472.63. This represents a 7.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.56% of the company's stock.

Institutional Trading of Nextpower

Several institutional investors and hedge funds have recently bought and sold shares of the business. Smartleaf Asset Management LLC grew its position in Nextpower by 107.6% during the 4th quarter. Smartleaf Asset Management LLC now owns 299 shares of the company's stock worth $26,000 after purchasing an additional 155 shares during the last quarter. Whittier Trust Co. of Nevada Inc. raised its holdings in shares of Nextpower by 268.7% in the fourth quarter. Whittier Trust Co. of Nevada Inc. now owns 306 shares of the company's stock valued at $28,000 after buying an additional 223 shares during the last quarter. Huntington National Bank boosted its stake in shares of Nextpower by 480.3% during the fourth quarter. Huntington National Bank now owns 383 shares of the company's stock worth $33,000 after buying an additional 317 shares during the period. Foster Dykema Cabot & Partners LLC purchased a new position in shares of Nextpower during the third quarter worth about $36,000. Finally, Baillie Gifford & Co. grew its holdings in shares of Nextpower by 76.5% during the fourth quarter. Baillie Gifford & Co. now owns 420 shares of the company's stock worth $37,000 after buying an additional 182 shares during the last quarter. Hedge funds and other institutional investors own 67.41% of the company's stock.

Nextpower Stock Performance

The stock has a market cap of $21.53 billion, a price-to-earnings ratio of 37.27, a PEG ratio of 6.00 and a beta of 1.60. The company has a 50-day moving average of $115.69 and a 200-day moving average of $105.39.

About Nextpower

Nextpower, formerly known as Nextracker, is traded on NASDAQ under the symbol NXT and is a leading provider of advanced solar tracking solutions for utility-scale and distributed energy projects. The company specializes in the design, engineering and manufacturing of single-axis tracker systems that optimize the capture of solar energy by following the sun’s trajectory throughout the day. Nextpower’s core hardware offerings aim to enhance energy yield, reduce balance-of-system costs and simplify installation and maintenance for downstream solar developers and operators.

In addition to its tracker hardware, Nextpower provides a suite of digital software and analytics tools to maximize asset performance.

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