Data center infrastructure providers Nutanix Inc. and Pure Storage Inc. are experiencing contrasting fates as they offer different outlooks for the current quarter. Nutanix’s shares dropped over 16% after-hours due to guidance below Wall Street’s expectations, while Pure saw a more than 9% increase in shares after surpassing forecasts.
Nutanix reported mixed results for the previous quarter, surpassing revenue forecasts but falling short on earnings. The company posted earnings of 6 cents per share before certain costs, an improvement from a 30-cent-per-share loss a year ago but lower than the expected 17 cents. Revenue rose by 17% to $524.6 million, exceeding analysts’ estimates. Despite a net loss of $16 million compared to $71 million a year ago, Nutanix remains a leader in software-defined hyperconverged infrastructure, focusing on cloud services and hyperconvergence software.
Nutanix President and CEO Rajiv Ramaswami highlighted the company’s strong third-quarter results and future innovations. Despite positive metrics such as annual contract value billings of $288.9 million and annual recurring revenue of $1.82 billion, Nutanix’s guidance for the upcoming quarter fell short of expectations.
On the other hand, Pure Storage reported exceptional earnings and revenue results, with earnings of 32 cents per share and revenue of $693.5 million, both surpassing estimates. With a focus on flash-based data storage hardware and software, Pure Storage has seen substantial growth in subscription services revenue and annual recurring revenue.
Pure Storage Chairman and CEO Charles Giancarlo emphasized the company’s success in addressing data storage challenges for enterprises. The company’s strong performance led to an optimistic revenue forecast for the next quarter, exceeding analysts’ expectations.
Both Nutanix and Pure Storage are navigating the competitive landscape of data center infrastructure providers, with Nutanix facing challenges in meeting revenue forecasts despite strong performance metrics. In contrast, Pure Storage continues to excel in providing innovative solutions for enterprise data storage needs, leading to consistent growth and profitability.
Overall, while Nutanix faces some short-term challenges, industry analysts remain optimistic about its long-term prospects. In contrast, Pure Storage’s continued success in meeting and surpassing expectations reflects its strong position in the market and its ability to address evolving enterprise needs.
Article Source
https://siliconangle.com/2024/05/29/polar-opposites-shares-nutanix-plunge-lower-guidance-pure-storage-jumps-bullish-forecast/
