Shares of cloud computing company, Nutanix (NASDAQ: NTNX) surged in pre-market trading at the time of publishing on Thursday after the company’s upbeat outlook. For the fiscal fourth quarter, Nutanix has projected revenues in the range of $470 million to $480 million, above consensus estimates of $452.2 million while annual contract value (ACV) billings are likely to be between $240 million and $250 million.
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The company expects Q4 adjusted operating margin to be between 9% and 10%. Looking forward to FY23, Nutanix anticipates revenues in the range of $1.84 billion to $1.85 billion versus analysts’ estimates of $1.8 billion. The company has projected FY23 ACV billings to be between $915 million and $925 million while the adjusted operating margin is likely to be between 6% and 7%.
In the fiscal third quarter, Nutanix generated revenues of $448.6 million, up by 11% year-over-year and above analysts’ estimates of $432.92 million. The company reported adjusted earnings of $0.04 per share in Q3 versus a loss of $0.05 per share in the same period last year, in line with consensus estimates.
Analysts are cautiously optimistic about NTNX stock with a Moderate Buy consensus rating based on four Buys and two Holds.
