Hybrid multicloud computing company Nutanix (NASDAQ: NTNX) will be reporting earnings this Wednesday after market hours. Here’s what you need to know.
Nutanix beat analysts’ revenue expectations last quarter, reporting revenues of $722.8 million, up 10.4% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ billings estimates.
Is Nutanix a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Nutanix’s revenue to grow 7.4% year on year, slowing from the 21.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nutanix rarely misses Wall Street’s revenue estimates.
Looking at Nutanix’s peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Datadog delivered year-on-year revenue growth of 32.2%, beating analysts’ expectations by 4.9%, and Dynatrace reported revenues up 19.4%, topping estimates by 2.1%. Datadog traded up 39.3% following the results while Dynatrace was down 5.3%.
Read our full analysis of Datadog’s results here and Dynatrace’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 10% on average over the last month. Nutanix is up 15.1% during the same time and is heading into earnings with an average analyst price target of $54.68 (compared to the current share price of $46.95).
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