Nextpower Stock Sentiment Strong Ahead of Earnings

Nextpower Inc (NASDAQ:NXT) is gearing up for its fiscal fourth-quarter report, due out after the close on Tuesday, May 12. Ahead of the event, Zacks Research is anticipating earnings of 89 cents per share on revenue of $807.33 million and a year-over-year decrease of 31%.

NXT has closed six of its last eight post-earnings sessions higher, including a 13.3% swing this past January. This time around, the options pits are pricing in a next-day swing of 20%, substantially larger than the stock's historical earnings move of 13.7%. 

On the charts, Nextpower stock has dealt with overhead pressure at the $130 region, though it's now inching closer to its March 25 record high of $131.72 -- last seen up 3.5% at $130.32 today. Year to date, the equity is up 49.6%. 

Bullish sentiment is already elevated heading into the event. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NXT's 50-day call/put volume ratio of 3.33 ranks higher than 98% of readings from the past year. 

Analyst sentiment remains overwhelmingly positive as well, with 19 of 28 covering brokerages carrying a "strong buy" rating, compared to seven "buy" ratings and zero "strong sell" ratings. This leaves the shares vulnerable to downgrades, should earnings guidance disappoint.