Nutanix stock dives more than 20% after earnings include poor forecast

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Nutanix Inc. in later trading Wednesday after poor fourth-quarter forecasts. shares fell more than 20%.

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Nutanix NTNX,
+2.24%
According to FactSet, executives guided for fiscal fourth quarter revenue of $340 million to $360 million and billing of $175 million to $185 million, while analysts were expecting an average of $439 million in revenue and $215.8 million in billing. As a result, they pulled their annual forecast from $1.54 billion to $1.56 billion in revenue, up from $760 million to $765 million previously, after billing about $1.63 billion, and $735 million to $745 million.

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“At the end of the third quarter, we saw the unexpected impact of challenges that limited our growth in the quarter and impacted our outlook for the fourth quarter,” Chief Executive Rajeev Ramaswamy said in a statement. “Delays in the supply chain with our hardware partners accounted for a significant majority of the impact on our outlook, and higher-than-expected sales reps in the third quarter were also a factor.”

“We do not believe these challenges reflect any changes in demand for our hybrid multicloud platform, and we remain focused on mitigating the impact of these issues and continuing to execute on the opportunity before us.”

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Cisco Systems Inc. Supply-chain issues with CSCO have plagued tech companies relying on hardware in recent weeks.
+0.53%
as a prime example. Nutanix has attempted to move away from its hardware roots and focus on “hyperconvergence” software, but Cisco executives noted that sales of the software were also stopped by customers requiring relevant hardware to run the software. .

For more: Cisco blames China’s lockdown for its forecast cuts, but it could lead to deeper problems

Like Cisco, Nutanix hit its numbers by offering disappointing forecasts. Nutanix reported a loss of $123.6 million, or 50 cents per share, in the fiscal third quarter; After adjusting for stock-based compensation and other effects, Nutanix reported a loss of 5 cents per share, an improvement from last year’s adjusted loss of 41 cents per share. Revenue increased from $344.5 million a year ago to $403.7 million, and billing increased from $159.9 million to $204.7 million. Analysts expected average sales of $398 million and an adjusted loss of 22 cents per share on bills of $197.9 million, according to FactSet.

Nutanix shares are down 32.8% so far this year, as the S&P 500 index SPX,
+0.95%
Has dropped 17.3%.

Credit: www.marketwatch.com /

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