| COMPANY |
Nextracker Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
3:24-cv-9467 |
| JUDGE |
The Hon. Patrick Casey Pitts |
| CLASS PERIOD |
February 1, 2024, through August 1, 2024 |
| SECURITY TYPE |
Common Stock |
LEAD PLAINTIFF DEADLINE IS FEBRUARY 25, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
The Class Period begins on February 1, 2024. The day before, on January 31, 2024, after the market closed, Nextracker issued a release announcing the company’s financial results for its third fiscal quarter ended December 31, 2023. The release reported a 38% year- over-year increase in quarterly revenue to $710 million, a 168% year-over-year increase in quarterly adjusted EBITDA to $168 million, and “[r]ecord” backlog. The release also revised Nextracker’s 2024 annual outlook upward, increasing: (1) revenue to a range of $2.425 billion to $2.475 billion, from a range of $2.3 billion to $2.4 billion; (2) adjusted EBITDA to a range of $475 million to $500 million, from a range of $390 million to $440 million; (3) GAAP net income to a range of $374 million to $429 million, from $237 million to $266 million; and (4) adjusted diluted EPS to a range of $2.55 to $2.75, from a range of $1.95 to $2.15. In the release, Nextracker additionally stated that “Nextracker achieved a record third quarter, outperforming across revenue, profit and backlog, which reflects strong execution and spotlights our capability to meet customer requirements,” and that Nextracker was “well positioned as the global leader in trackers and we’re just getting started.”
Moreover, on January 31, 2024, Nextracker held an earnings call with analysts and investors to discuss Nextracker’s third quarter 2024 results. During the call, Nextracker highlighted “another strong quarter” that resulted in “record revenue, profits and backlog.” Nextracker also claimed that the company now had backlog “significantly exceeding $3 billion,” and pointed out that this was “the third consecutive quarter we’ve raised our revenue and profit guidance.” Nextracker additionally highlighted “multiple headwinds and tailwinds impacting solar development velocity” in the United States, the company’s most important market, but stated that “in totality” the tailwinds of increased demand continued to offset the headwinds of “specific project” delays and that the conditions causing delays were improving.
On August 1, 2024, Nextracker issued a release announcing its financial results for its first fiscal quarter ended June 30, 2024. In the release, Nextracker revealed that the company’s revenue had declined sequentially, from $737 million in the fourth fiscal quarter of 2024 to $720 million during the first fiscal quarter of 2025. Similarly, Nextracker’s GAAP gross profit had declined sequentially from $340 million in the fourth fiscal quarter of 2024 to $237 million during the first fiscal quarter of 2025. Notably, Nextracker did not raise guidance for the first time since it became a public company, implying a slowdown in growth for the remainder of the year. Additionally, during a related earnings call, Nextracker belatedly admitted that the company was not in fact effectively offsetting the timing headwinds impacting the overall industry as previously represented. Nextracker also conceded that “it is taking longer for projects to be fulfilled in real life due to” “construction permits or interconnection delays” and that only “80% of that backlog is expected to be realized over the next eight quarters.”
On this news, the price of Nextracker common stock dropped from $46.83 per share when the market closed on August 1, 2024, to $39.81 per share when the market closed on August 5, 2024, a 15% decline on abnormally high volume over two trading days.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.