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Nutanix (NASDAQ:) reported third-quarter earnings that surpassed Wall Avenue expectations, however issued weaker-than-expected steering for the fourth quarter, sending its shares tumbling greater than 11% in premarket buying and selling Thursday.
The corporate’s earnings per share (EPS) for the third quarter got here in at $0.28, $0.11 larger than the analyst estimate of $0.17. Income for the quarter was additionally sturdy at $524.6 million, exceeding the consensus estimate of $515.96 million.
Nutanix anticipates income to be between $530 million and $540 million, which falls in need of the analyst consensus of $548.1 million. For the total fiscal yr 2024, the corporate expects income to vary from $2.13 billion to $2.14 billion, barely beneath the consensus estimate of $2.141 billion.
President and CEO Rajiv Ramaswami attributed the stable third-quarter outcomes to “disciplined execution and the energy of our enterprise mannequin.”
He highlighted current initiatives in fashionable functions and generative AI, in addition to expanded partnerships, as key drivers of the Nutanix Cloud Platform’s worth proposition.
CFO Rukmini Sivaraman emphasised the corporate’s stability of prime and bottom-line efficiency, pointing to a 24% improve in annual recurring income (ARR) YoY and sturdy free money circulation era year-to-date.
“We stay centered on delivering sustainable, worthwhile development,” Sivaraman added.
Regardless of delicate steering, analysts at KeyBanc Capital Markets reiterated their Obese score on NTNX. The agency famous Nutanix’s annual contract worth (ACV) offers are rising in dimension and strategic significance, “with shoppers benefiting from Nutanix’s positioning to profit from hybrid cloud, catastrophe restoration, and AI tendencies with increasing catalysts.”
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