Latest news with #OpEx
Yahoo
5 days ago
- Business
- Yahoo
NXT Q1 Earnings Call: Missed Revenue Expectations, Expanding Product Portfolio, and Margin Outlook
Solar tracker company Nextracker (NASDAQ:NXT) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 25.5% year on year to $924.3 million. Its non-GAAP EPS of $1.29 per share was 32% above analysts' consensus estimates. Is now the time to buy NXT? Find out in our full research report (it's free). Revenue: $924.3 million (25.5% year-on-year growth) Adjusted EPS: $1.29 vs analyst estimates of $0.98 (32% beat) Adjusted Operating Income: $162.8 million vs analyst estimates of $175 million (17.6% margin, 7% miss) Adjusted EPS guidance for the upcoming financial year 2026 is $3.84 at the midpoint, missing analyst estimates by 1.5% EBITDA guidance for the upcoming financial year 2026 is $737.5 million at the midpoint, below analyst estimates of $762.6 million Adjusted EBITDA Margin: 18.1% Backlog: $4.92 billion at quarter end, up 23% year on year Market Capitalization: $8.48 billion Nextracker's first quarter results were shaped by continued demand for utility-scale solar trackers and expanded international activity, which management said drove a sequential increase in backlog and bookings. CEO Dan Shugar emphasized the company's efforts to strengthen its market leadership, highlighting recent wins in regions such as Europe, Latin America, and Australia. President Howard Wenger pointed to the successful uptake of new products like the Hail Pro series and strong customer demand for fully domestic content in the U.S., supported by a flexible supply chain. Management also noted stable pricing and project execution, with the backlog providing enhanced visibility into near-term revenue streams. Looking ahead, Nextracker's guidance reflects increased investment in research and development, expansion into adjacent technologies, and ongoing policy uncertainty in the U.S. solar market. CEO Dan Shugar described a strategic move toward becoming a broader solar technology platform provider, with recent acquisitions such as Bentek Corporation expected to contribute to future growth. CFO Chuck Boynton cautioned that higher operating expenses and capital expenditures would impact margins, stating, 'We're leaning in on growth and investing in OpEx and CapEx to drive multi-year expansion.' Management acknowledged risks related to evolving U.S. policy, tariffs, and global project mix but pointed to a strong contracted backlog as a buffer for the coming year. Management attributed Q1 performance to a combination of robust international sales, the steady ramp of new product offerings, and the expansion of its order backlog. The quarter also saw the company continue its shift towards a comprehensive solar technology platform. International expansion momentum: Management highlighted that contracts were signed in 17 different countries during the quarter, including growth in less-discussed markets such as Saudi Arabia, Greece, Peru, Chile, and Bulgaria. Europe, especially Spain, saw record deliveries, attributed to the success of the XTR terrain-following tracker tailored for regional conditions. Domestic content demand: In the U.S., Nextracker observed rising demand for tracker systems with 100% domestic content, a trend tied to policy incentives and customer requirements. The company's flexible supply chain, with 90 manufacturing sites across 19 countries, allowed it to meet these needs and secure long-term customer relationships. New product adoption: The Hail Pro series and TrueCapture yield management platform gained strong traction, with over nine gigawatts of Hail Pro trackers sold and significant sales of the XTR series. These products address insurance and system performance requirements, which management claims are increasingly important for customers. Order backlog growth: The order backlog increased sequentially, with management reporting 'record bookings and backlog' and continued book-to-bill ratios above one. This backlog, encompassing both domestic and international projects, was described as providing visibility and reducing revenue uncertainty. Strategic acquisitions: The acquisition of Bentek Corporation and two specialty foundation companies marked a shift toward a solar power technology platform. Management stated that integrating tracker and electrical balance-of-system (eBOS) offerings would simplify procurement for customers and create new revenue streams beyond the traditional tracker business. Nextracker's outlook is shaped by ongoing investments in product development, expansion into new business lines, and uncertainties related to policy and market conditions. Platform expansion strategy: Management is prioritizing investment in adjacent technologies, such as electrical balance-of-system solutions, with the expectation that these new offerings will drive a significant portion of future revenue. CEO Dan Shugar stated that in five years, one-third of revenue could come from non-tracker sources. Margin headwinds from investment: CFO Chuck Boynton outlined that higher operating and capital expenditures—particularly to scale recent acquisitions and develop new products—will weigh on EBITDA margins in the near term. The company expects structural gross margins to remain in the low-30% range, but operating margins will be influenced by both investments and geographic revenue mix. Policy and market risks: Management identified evolving U.S. policy, including tax credit provisions and tariffs, as risk factors for future results. They noted that much of the coming year's business is already contracted, which limits near-term downside but leaves future periods exposed to potential regulatory shifts. In the coming quarters, the StockStory team will monitor (1) the pace of integration and revenue contribution from recent acquisitions such as Bentek, (2) signs of sustained demand for new product offerings like TrueCapture and Hail Pro, and (3) regulatory developments affecting domestic content requirements and tax credit incentives in the U.S. The durability of margins amid international expansion and investment will also be closely tracked. Nextracker currently trades at a forward P/E ratio of 14.9×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Ithaca Energy PLC (STU:XE3) Q1 2025 Earnings Call Highlights: Record Production and Strategic ...
Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ithaca Energy PLC (STU:XE3) reported a record quarterly production of 127,400 barrels per day, demonstrating enhanced operating capacity. The company achieved a record quarterly adjusted EBITAX of $653.2 million, supported by a reduction in OpEx per barrel. Ithaca Energy PLC (STU:XE3) has successfully executed strategic acquisitions, including increasing its stake in the Cygnus Bravo project to 85%, which is expected to add significant production capacity. The company maintained a strong safety record with zero incidents reported, emphasizing its focus on safety and environmental performance. Ithaca Energy PLC (STU:XE3) reaffirmed its commitment to shareholder returns, with a third interim dividend paid in April and a target dividend of $500 million for 2025. The company reported a loss for the period due to a one-off non-cash deferred tax charge of $327 million related to the extension of the EPL. There is an increase in the net OpEx range by $10 million and net producing asset CapEx by $20 million, which could impact future profitability. The strengthening of the pound against the dollar has put upward pressure on costs, despite hedging efforts. Ithaca Energy PLC (STU:XE3) faces challenges in the M&A market, with limited opportunities for accretive acquisitions as the company continues to high-grade its portfolio. The company is awaiting clarity on the environmental and tax situation in the North Sea, which could impact future projects like the Cambo development. Warning! GuruFocus has detected 6 Warning Signs with STU:XE3. Q: Can you discuss the current M&A market in the UK, particularly in terms of the quality and quantity of assets available? Would you classify it as a buyer's or seller's market? A: We have seen increased interest in the UKCS since the autumn budget, with several deals and discussions taking place. It's difficult to categorize the market as strictly a buyer's or seller's market. We focus on value and meeting our investment metrics, aiming to add high-quality, accretive assets to our portfolio. We continue to see value in the UKCS and are methodical in our approach to M&A. Q: What are your current production levels for the Captain project, and what are your expectations for year-end and peak production rates? A: In Q1, Captain's production was around 21,000 barrels of oil equivalent per day, which was 15% higher than planned. This was due to the enhanced oil recovery response and production efficiency being 2% ahead of our plan. We are pleased with the performance and expect continued strong results. Q: You've reiterated your dividend target for 30% post-tax cash from operations and a $500 million target for the year. How confident are you in achieving these targets given the current oil price environment? A: We remain committed to distributing 30% of post-tax cash from operations, with a target of $500 million. Strong operational performance and hedging positions support our confidence in achieving these targets. The 15-30% range allows flexibility based on market conditions and capital plans. Q: Can you provide more detail on the allocation of CapEx per asset and the breakdown of cash tax payments between EPL, CT, and SCT? A: While we don't provide a detailed CapEx breakdown by asset, Captain is a significant focus with over $150 million invested, including drilling and upgrades. Regarding cash tax payments, approximately 90% is EPL, with the remainder being CT and SCT. Q: What is your perspective on consolidation in the UK North Sea, and what competition have you faced in recent deals? Also, what is the potential timeline for farming in assets like Cambo? A: We see consolidation as crucial for achieving scale and cost advantages in the UKCS. While there is competition, our track record and ability to move quickly make us a preferred partner. For Cambo, we seek farming partners and await clarity on fiscal and environmental policies before making further decisions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
21-05-2025
- Business
- Yahoo
Maha Energy AB (LTS:0GEA) Q1 2025 Earnings Call Highlights: Strong Production Milestones Amid ...
Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Maha Energy AB (LTS:0GEA) achieved a significant production milestone with Brava reaching 21,000 barrels of equivalent per day in Q1, and further expansion in April with Atlanta increasing production to 82,000 barrels per day. The company reported a strong financial position with over $106 million in cash and liquid investments, and it is debt-free. Operational efficiency improved with the lowest OpEx per barrel of $15, reflecting effective cost control measures. Maha Energy AB (LTS:0GEA) has a robust cash flow generation, with Brava delivering almost $500 million in revenue and $182 million in EBITDA. The company is focused on high-return projects, targeting investments with returns higher than 25%, particularly in the Illinois Basin. The company faces challenges in the Venezuelan market due to political uncertainties and is awaiting authorizations and contract negotiations. There is a natural production decline in the Illinois Basin, impacting revenue due to lower oil prices. Despite strong production figures, the stock price of Maha Energy AB (LTS:0GEA) is trading at a significant discount, indicating potential undervaluation. The company has limited ability to aggressively pursue share buybacks due to blackout periods and other financial commitments. Maha Energy AB (LTS:0GEA) is undergoing significant cost-cutting measures, including downsizing management and internal teams, which may impact operations. Warning! GuruFocus has detected 2 Warning Signs with LTS:0GEA. Q: Would Maha Energy be looking into investing in minerals as well? A: Yes, we are keen on exploring opportunities in the mineral space due to the solid track record of our major shareholders in this sector. We see a lot of potential in this area. (Respondent: Unidentified_2) Q: Is Illinois the only net back operator for Maha Energy? A: Yes, currently, Illinois Basin is our main operational asset. We are focusing on cost control and identifying high-return projects within the basin, especially in the current low oil price environment. (Respondent: Unidentified_2) Q: How can production in Brava be counted as Maha production? A: We present Brava's production on a pro forma basis. Although it's not directly our share, we support Brava in governance and expect to benefit through dividends as they deleverage. (Respondent: Unidentified_2) Q: Why doesn't Maha Energy buy back shares more aggressively? A: We believe Maha's share price is undervalued, but restrictions such as blackout periods limit our ability to buy back shares year-round. We plan to discuss and potentially renew the buyback program at the AGM. (Respondent: Unidentified_2) Q: Are you expecting further cash consumption for Brava investments this quarter? A: No, we are focused on cost control and expect to reduce cash consumption significantly. We've downsized management and internal teams to lower G&A expenses. (Respondent: Unidentified_2) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
14-05-2025
- Business
- Yahoo
Pixelworks Inc (PXLW) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: $7.1 million for Q1 2025, down from $9.1 million in Q4 2024 and $16.1 million in Q1 2024. Home and Enterprise Revenue: Approximately $5.8 million for Q1 2025. Mobile Revenue: Approximately $1.3 million for Q1 2025. Non-GAAP Gross Profit Margin: 49.9% for Q1 2025, compared to 54.8% in Q4 2024 and 50.7% in Q1 2024. Non-GAAP Operating Expenses: $10.4 million for Q1 2025, down from $12.6 million in Q1 2024. Non-GAAP Net Loss: $6.5 million or $0.11 per share for Q1 2025, compared to $4.3 million or $0.07 per share in Q4 2024. Adjusted EBITDA: Negative $5.8 million for Q1 2025, compared to negative $3.6 million in Q4 2024. Cash and Cash Equivalents: $18.5 million at the end of Q1 2025, down from $23.6 million at the end of Q4 2024. Q2 2025 Revenue Guidance: Expected to be between $8 million and $9 million. Q2 2025 Non-GAAP Gross Profit Margin Guidance: Expected to be between 41% and 43%. Q2 2025 Non-GAAP EPS Guidance: Expected to range between a loss of $0.11 per share and a loss of $0.08 per share. Warning! GuruFocus has detected 6 Warning Signs with PXLW. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pixelworks Inc (NASDAQ:PXLW) reported first-quarter results consistent with expectations, with sequential growth in the mobile business. The company has significantly reduced operating expenses, down more than $2 million year over year, and expects further reductions in 2025. Pixelworks Inc (NASDAQ:PXLW) is making progress with its TrueCut Motion platform, targeting to double the number of titles from 5 in 2024 to 10 in 2025. The company has formalized a strategic partnership with a market-leading post-production company to expand the TrueCut ecosystem. Pixelworks Shanghai subsidiary is poised to reach profitability in the second half of 2025, with multiple revenue opportunities in play. First-quarter revenue decreased to $7.1 million from $16.1 million in the first quarter of 2024, reflecting anticipated seasonality and lower sales of end-of-life products. Non-GAAP gross profit margin decreased to 49.9% from 54.8% in the previous quarter, due to a shift in product mix and less overhead absorption. The company reported a non-GAAP net loss of $6.5 million for the first quarter of 2025, compared to a net loss of $4 million in the first quarter of 2024. Cash and cash equivalents decreased to $18.5 million from $23.6 million at the end of the fourth quarter. Guidance for the second quarter of 2025 indicates continued challenges, with expected revenue between $8 million and $9 million and a non-GAAP EPS loss between $0.11 and $0.08 per share. Q: Todd, you talked about Pixelworks Shanghai reaching profitability. Can you give us some help with what the revenue levels that might be achieved at? And maybe what portion of the OpEx is attributable to Shanghai so we can understand that operating model? A: Todd DeBonis, President and CEO, explained that OpEx for Pixelworks Shanghai is expected to be around $7 million to $7.5 million per quarter. The revenue mix includes home and entertainment, mobile, IP licensing, and design services. Profitability depends on a combination of these revenue streams, and if all goes as planned, the unit could be profitable in Q3 and Q4. Q: Regarding TrueCut, are your device discussions with Chinese brands or global non-Chinese smartphone OEMs? A: Todd DeBonis clarified that the device discussions for TrueCut are with mobile OEMs, but the one that completed certification testing is not a Chinese OEM. The focus is on bringing TrueCut to premium home entertainment devices, primarily targeting North America and Europe. Q: On the ASIC design services engagements, how would you give a framework for sizing those opportunities and the revenue models associated? A: Todd DeBonis explained that design services can range from partial to full turnkey solutions, with costs for large SoCs in 12-nanometer ranging from $10 million to $20 million. The revenue size depends on the extent of services provided to the customer. Q: For mobile, how are the engagements lining up with the revenue expectations for this year? A: Todd DeBonis indicated that given the Q2 guidance, replicating 2023's $30 million mobile revenue would be challenging. However, an uptick is expected in the second half of the year, with revenue likely closer to 2024 levels or slightly above. Q: Could you expand on the multiple programs with your lead mobile customer and additional engagements? Will any additional engagements generate revenue in 2025? A: Todd DeBonis stated that additional engagements are booked design wins with the X7P. The co-development with the lead customer involves a new solution not yet offered to the market, enhancing graphical experiences. While no designs are in the bag yet, there are opportunities available this year. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
07-05-2025
- Business
- Yahoo
National Storage Affiliates Trust (NSA) Q1 2025 Earnings Call Highlights: Navigating Challenges ...
Q : Can you provide context on the 5% increase in contract rates from March and the 20 basis points rise in occupancy? Is this typical for April, and how do these rates compare year-over-year? A : David Cramer, CEO: We've seen sequential improvements in our rate scheme throughout the year, with street and contract rates increasing from January through April and into May. Our focus has been on maximizing revenue through occupancy, rate growth, and marketing spend. Our new schedule shows in-place customer rate growth and move-in rate growth, with move-in rates turning positive in March and continuing to improve in April and May. Core FFO per share declined by 10% from the prior year period due to a decrease in same-store NOI and an increase in interest expense. NSA's marketing and pricing strategies, including the use of AI, have led to better search rankings and optimized rate decisions. Net Debt-to-EBITDA: 6.9 times at quarter end, expected to be 6% to 6.5% in the latter half of the year. Story Continues Q: How are you progressing with revenue synergies for the PRO properties, and can you update us on the occupancy gap you aimed to close by summer? A: David Cramer, CEO: The transition mainly occurred in the third and fourth quarters of last year. We've seen traction from consolidated pricing and marketing efforts. Initially, there was a 250 to 300 basis point occupancy gap, which we aim to close by mid-summer. We're making good progress, particularly in rate growth, and expect further traction in marketing and occupancy by then. Q: Can you quantify the expected revenue growth pickup in the second half of the year, given the first quarter's negative 3% revenue growth? A: Brandon Togashi, CFO: We started the year with mid-single-digit negative same-store NOI growth, slightly worse than expected due to OpEx items like winter storm impacts. We expect continued sequential improvement, with revenue and NOI turning positive in the back half of the year, although the exact timing is uncertain. Q: How much of the month-to-month improvement is due to seasonality versus actual demand improvements? A: David Cramer, CEO: Seasonality plays a role, with activity picking up in the spring leasing season. However, we've also seen success in street rate improvements since late last year, which is atypical for early months. Our ECRI program remains productive, and while occupancy may not rise as strongly as last year, our revenue has improved significantly. Q: Can you discuss the dynamics of street rates and occupancy, and how you expect these to play out through the spring leasing season? A: David Cramer, CEO: We've had success in improving street and move-in rates, leading to better contract rates. While occupancy is a focus, our marketing and top-of-the-funnel efforts are gaining traction. We're balancing revenue growth with occupancy, and the improved rates reduce pressure on occupancy numbers. Q: What is the current state of the transaction market, and what are your acquisition and disposition plans? A: David Cramer, CEO: We're seeing deal flow and are patient in matching deals with our cost of capital. We have active JV partners and are making progress on dispositions, aiming for $200 million this year. Acquisitions are lumpy, and we're being selective in our purchases. Q: What occupancy assumptions are baked into your guidance, and have you seen any signs of a housing market recovery? A: Brandon Togashi, CFO: Our guidance assumes a moderately better demand than last year, with occupancy increases expected. We're seeing encouraging demand in expected markets, but it's still early in the leasing season. Q: Can you quantify the operating expense savings from the PRO internalization, and will there be additional benefits in 2025? A: Brandon Togashi, CFO: We've realized G&A savings of about $2.5 million annually, with tenant insurance economics and property-level personnel cost savings also contributing. We're at a good run rate, and these benefits are largely reflected in our current numbers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
