Nutanix Plunges as Supply Chain Challenges Impact Outlook
By Sam Boughedda
Investing.com -- Shares of cloud computing firm Nutanix Inc (NASDAQ:NTNX) have plunged in extended trading Wednesday after it said increased supply chain delays with its hardware partners has impacted its outlook.
The company posted an adjusted loss per share of $0.05 on revenue of $403.7 million, topping forecasts of a loss of $0.22 per share on revenue of $397.88 million.
“Our third quarter reflected continued solid execution, demonstrating strong year-over-year top and bottom line improvement,” said Rajiv Ramaswami, President, and CEO of Nutanix.
However, the company sees fiscal fourth-quarter revenue between $340 million and $360 million, below the expected $439.5 million. For fiscal 2022, it sees revenue between $1.535 billion and $1.555 billion, again below forecasts.
Nutanix stock plummeted 28% in reaction.
“Late in the third quarter, we saw an unexpected impact from challenges that limited our upside in the quarter and affected our outlook for the fourth quarter. Increased supply chain delays with our hardware partners account for the significant majority of the impact to our outlook, and higher-than-expected sales rep attrition in the third quarter was also a factor,” added Ramaswami.
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