Guess which ASX 200 stock hit a record-high on ‘strong’ half-year result

The Nextdc Ltd (ASX: NXT) share price is rising on Wednesday morning.

At the time of writing, the ASX 200 data centre operator’s shares are up 3.5% to a record high of $15.69.

This follows the release of the company’s half-year results after the market close on Tuesday.

ASX 200 stock hits record high on half-year results

• Revenue up 31% to a record of $209.1 million
• Net revenue up 8% to $149.1 million
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) up 5% to $102.0 million

What happened during the half?

For the six months ended 31 December, NextDC reported a 12% increase in revenue to $209.1 million.

This reflects a 77% increase in contracted utilisation to 149.0MW, a 13% lift in customer numbers to 1,919, and a 5% lift in interconnections to 18,207. The latter now represents 9.2% of net revenue.

How does this compare to expectations?

Goldman Sachs was pleased with the result, noting that the ASX 200 stock’s earnings were ahead of expectations. It said:

Strong 1H24 result: NXT reported 1H24 underlying Sales/EBITDA /NPAT of A$209mn/A$102mn/-A$18mn, that was +4%/+12%/+$11mn vs. GSe. Cash conversion was marginally softer (GOCF = 79% of underlying EBITDA in 1H24, vs. 90% in 1H23), while 1H24 capex of $220mn was well below GSe of A$465mn, with Net debt increasing to A$781mn (4.0X FY24E EBITDA, Jun-23 A$599mn).

Management commentary

NextDC’s CEO and managing director, Craig Scroggie, was pleased with the company’s record half. He said:

We are pleased to deliver another record result in 1H24, with the business continuing to exhibit solid growth across key metrics during this reporting period. 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.

Outlook

The ASX 200 stock has reaffirmed its guidance for FY 2024.

It continues to expect total revenue of $400 million to $415 million and underlying EBITDA in the range of $190 million to $200 million.

Management also held firm with its capital expenditure guidance of $850 million to $900 million.

The post Guess which ASX 200 stock hit a record-high on ‘strong’ half-year result appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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