Nutanix stock jumps 16% on strong results; RBC flags 'impressive' execution
- Futures slip as mixed data clouds Fed policy outlook
- 12 Wall Street analysts discuss Apple Vision Pro as 'hefty' price pushes shares lower
- Bitcoin slides to near 3-month lows after SEC sues Binance
- SEC sues Binance, Apple unveils Vision Pro headset - what's moving markets
- Apple (AAPL) should buy Disney (DIS) to drive adoption of Vision Pro - analyst
Get Alerts NTNX Hot Sheet
17 Buy, 11 Hold, 1 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 14 | Down: 14 | New: 21
Join SI Premium – FREE
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
(Updated - May 25, 2023 6:30 AM EDT)
Nutanix (NASDAQ: NTNX) shares soared more than 15% pre-open Thursday after the company reported Q3 earnings.
Earnings per share came in at $0.04, just ahead of the consensus estimate of $0.03. Revenue grew 11% year-over-year to $448.58 million, beating the consensus estimate of $433.12M.
ACV billings were up 17% year-over-year to $240M. Annual Recurring Revenue (ARR) was $1.47 billion, representing 32% year-over-year growth.
“Our business performed well in the third quarter against an uncertain macro backdrop, as the value proposition of our cloud platform continued to resonate with customers,” said CEO Rajiv Ramaswami.
For Q4/23, the company expects revenue in the range of $470-$480M, above the consensus of $452.24M. ACV billings are seen at $240–$250M.
For the full year, the company expects revenue in the range of $1.84-$1.85B, better than the consensus of $1.8B. ACV billings are seen at $915–$925M.
RBC analyst Matthew Hedberg raised the price target on NTNX stock to $38 per share as "execution remains impressive."
"Results were highlighted by outperformance in ACV billings/revenue and strong FCF despite a challenging, though consistent macro. FY/23 guidance again moved higher as the fundamentals remain intact. We like the completion of the investigation into third-party software usage which should remove an overhang from the stock," Hedberg wrote.
BofA analyst Wamsi Mohan also raised the target on Nutanix shares, going to $34 per share as ACV billings "continue to benefit from strong renewals."
"We reiterate our Neutral rating given the tougher macro backdrop and broader weakening spending environment offset by solid execution that is delivering on efficiently converting a strong renewal pipeline."
By Davit Kirakosyan and Senad Karaahmetovic
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- GitLab stock jumps 26% on strong Q1 beat & guidance; Analysts bulled-up
- Xunlei (XNET) Announces $20M Share Buyback
- Zai Lab (ZLAB) and Novocure (NVCR) Report LUNAR Phase 3 Trial Demonstrates Statistically Significant and Clinically Meaningful Extension in Overall Survival
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Earnings, Hot Guidance, Hot List, Management Comments
Related EntitiesEarnings, Pre Market Movers, Senad Karaahmetovic
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!