Nutanix Stock Plunges 12% on Weak Outlook

May 30, 2024 12:03 PM - Davit Kirakosyan

Image credit: FMP

Nutanix (NASDAQ:NTNX) reported third-quarter earnings that exceeded Wall Street expectations, yet its shares dropped by 12% in pre-market today due to weaker-than-expected guidance for the fourth quarter.

The company posted third-quarter earnings per share (EPS) of $0.28, beating the analyst estimate of $0.17. Revenue for the quarter was $524.6 million, surpassing the Street estimate of $515.96 million.

However, Nutanix's revenue forecast for the fourth quarter is between $530 million and $540 million, below the analyst consensus of $548.1 million. For the full fiscal year 2024, the company expects revenue to be in the range of $2.13 billion to $2.14 billion, slightly under the consensus estimate of $2.141 billion.

President and CEO Rajiv Ramaswami credited the strong third-quarter performance to disciplined execution and a robust business model. He pointed out the value of recent initiatives in modern applications and generative AI, along with expanded partnerships, as key enhancements to the Nutanix Cloud Platform's value proposition.

CFO Rukmini Sivaraman highlighted the company's balanced top and bottom-line performance, noting a 24% year-over-year increase in annual recurring revenue (ARR) and strong free cash flow generation so far this year.

Other Blogs

Nov 22, 2024 5:08 AM - Parth Sanghvi

Fundamental Analysis: Principles, Types, and How to Use It

Fundamental analysis is one of the most essential tools for investors and analysts alike, helping them assess the intrinsic value of a stock, company, or even an entire market. It focuses on the financial health and economic position of a company, often using key data such as earnings, expenses, ass...

Dec 17, 2024 8:58 AM - Sanzhi Kobzhan

Examining Tesla’s Financial Health Using FinancialModelingPrep’s Ratios API

Tesla, one of the world’s most talked-about electric vehicle manufacturers, attracts a lot of attention from investors and market watchers. By examining a snapshot of Tesla’s financial ratios—such as those provided by FinancialModelingPrep’s Ratios API—we can get a clearer picture of the company’s f...

Dec 22, 2024 7:59 AM - Sanzhi Kobzhan

Two great Software Platform Stocks Similar to Palantir (PLTR)

When it comes to cutting-edge software and data analytics, Palantir Technologies (NYSE: PLTR) is often front and center. But for many investors, it’s important to consider alternative or complementary stocks in the same sector that may offer robust growth potential. As PLTR looks expensive (overvalu...