Nutanix inventory leap. It was an “spectacular” quarter, in response to analysts. – Barrons

Nutanix shares soared on Friday after the cloud computing firm raised its full-year outlook in response to stable demand for its companies.

Nutanix (ticker: NTNX) mentioned after the market closed Thursday that it expects full-year income between $2.09 billion and $2.12 billion, in contrast with forecasts of $1.84 billion to $1.85 billion. The consensus name on Wall Avenue was $2.07 billion, in response to FactSet.

The corporate additionally reported fourth-quarter earnings of 24 cents per share on income of $494.2 million. Analysts polled by FactSet anticipated revenue of 16 cents per share on income of $475.2 million. Free money circulate was $45.4 million, whereas Wall Avenue anticipated a lack of $24.6 million.

“Our constant execution all year long towards an unsure macroeconomic backdrop is a testomony to the advantages of our subscription mannequin,” Chief Government Officer Rajiv Ramaswami mentioned within the earnings report.

RBC Capital Markets analyst Matthew Hedberg raised his worth goal on Nutanix to $43 from $38 and maintained his outperform score on the inventory.

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Nutanix shares rose 14% on Friday Based on Dow Jones Market Knowledge, the value was $35.32, on observe for its highest shut since November 2021. The inventory has gained 36% this 12 months.

“Execution was as soon as once more spectacular, with outcomes highlighted by outperformance in ACV [annual contract value] “Billings/gross sales and powerful FCF regardless of a difficult, albeit constant, macro,” Hedberg mentioned in a analysis word.

KeyBanc Capital Markets analyst Thomas Blakey additionally raised his worth goal to $45 from $35 and maintained his “Obese” score on the inventory.

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“Nutanix skilled sturdy contract renewals within the fourth quarter of 2023, which continued to broaden margins, and the corporate signed a number of bigger, multimillion-dollar contracts in the course of the quarter, regardless of comparatively weak macroeconomic situations highlighting Nutanix’s worth proposition
“Our view is that there aren’t any provides,” Blakey wrote in a analysis word.

Write to Angela Palumbo at [email protected]