NextDC shares climb 10% after earnings beat analyst expectations
Make us a preferred source
Make us a preferred source on Google
The news: Shares in NextDC soared over 10% on Wednesday as the company's earnings results, that were released after market close on Tuesday, beat analyst expectations.
The numbers: NextDC shares reached an all-time high, climbing 10.3% to $16.72 by 2pm AEDT.
On Tuesday, the Brisbane-based business reported a loss after tax of $22.5 million in the six months to December 2023, growing tenfold on its $2.8 million loss a year earlier.
However, revenue grew 31% to $209.1 million year on year, while the company said it was on course to meet its full-year guidance of between $400 million to $415 million.
Citi analysts were upbeat on the results and said its underlying EBITDA of $102 million, up 5%, beat its estimates primarily due to lower costs which came in $5 million lower.
Goldman Sachs analysts called it "a strong result" and pointed to NextDC's expectations for FY24 to deliver record contract wins "given the wall of hyperscale cloud and AI demand".
The context: The company also outlined plans for new data centres in Australia and abroad, with work underway on new sites in Adelaide, Darwin and the Pilbara, as well as Kuala Lumpur and Auckland.
What they said: NextDC's CEO and managing director said: "The company remains well capitalised to take advantage of its strong forward sales pipeline as well as continue to build its forward sales and earnings outlook".
"As demand continues to be bolstered by the broad adoption of new technologies such as generative AI, the business remains in an outstanding position to support customer growth requirements across the Enterprise, Government and Hyperscale verticals," he said.
The source: ASX announcement
