Nutanix Inc (NTNX) Stock Falls on Disappointing Guidance

Nutanix Inc (NASDAQ:NTNX) shares fell as the company revealed a fourth-quarter outlook below expectations.

Nutanix IncIt was a positive earnings call at first for the software company that posted a loss of $93.2 million, or 66 cents a share. After adjusting earnings for stock-based compensation, the loss came in at 28 cents per share.

Analysts were calling for a loss of 35 cents per share. Meanwhile, Nutanix reported revenue of $182.2 million, beating Wall Street’s average estimate of $178.4 million late last week.

CFO Duston Williams noted that the increased costs of some software components took a toll on the company’s earnings over the period. However, the real news that sent the stock down was the company’s outlook.

To end the fiscal year, Nutanix is slated to post earnings at a loss of 45 cents to 48 cents per share in its fourth quarter. Meanwhile, analysts predicted an adjusted loss of 35 cents per share.

Additionally, revenue is also on line to miss or equal the mark as it will be in the range of $180 million to $190 million. Analysts’ target for the company’s sales is at around $188.5 million.

Nutanix has been around since 2009 and the company focuses on hyper-converged infrastructure appliances that integrates compute, storage, network and virtualization resources on a single hardware.

NTNX stock had fallen 5.2% by Monday afternoon at around 2:20 p.m. ET.

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