Nutanix (NTNX) Tops Q3 Earnings and Revenue Estimates
Nutanix (NTNX) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 10.53%. A quarter ago, it was expected that this enterprise cloud platform services provider would post earnings of $0.47 per share when it actually produced earnings of $0.56, delivering a surprise of 19.15%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Nutanix , which belongs to the Zacks Computers - IT Services industry, posted revenues of $638.98 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 2.06%. This compares to year-ago revenues of $524.58 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Nutanix shares have added about 29.1% since the beginning of the year versus the S&P 500's gain of 0.7%.
While Nutanix has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Nutanix: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.26 on $638.41 million in revenues for the coming quarter and $1.62 on $2.51 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Accenture (ACN), is yet to report results for the quarter ended May 2025. The results are expected to be released on June 20.
This consulting company is expected to post quarterly earnings of $3.27 per share in its upcoming report, which represents a year-over-year change of +4.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Accenture's revenues are expected to be $17.18 billion, up 4.4% from the year-ago quarter.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nutanix (NTNX) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
36 minutes ago
- Yahoo
Billionaire Bill Ackman's been investing in one of my favourite S&P 500 growth stocks
Billionaire hedge fund manager Bill Ackman – whos known for his bold bets and contrarian approaches – has become a big name in the investment world in recent years. When he buys a stock today, people tend to take note. Recently, Ackman, who runs Pershing Square Capital, invested in one of my favourite S&P 500 growth stocks. Should investors consider following him into this one? The stock Ackman's been buying is Amazon (NASDAQ: AMZN), one I have a large position in (it's currently my second-largest individual stock holding). He first started buying the stock in April when it experienced a major sell-off as a result of tariff uncertainty. At the time, it was trading significantly below its highs. We don't have a lot of information on the trade at present (we'll be able to get more details when Q2 13F regulatory filings are posted in mid-July). However, it's clear Ackman and his team believe they picked up a long-term winner at a great price. On a call with analysts, Pershing Square's chief investment officer Ryan Israel said the firm acquired a 'fantastic franchise' at an 'extremely attractive' valuation. It's worth noting that Israel praised the company's multi-pronged business model, saying the company should be able to navigate any tariff-induced slowdown and continue to deliver strong earnings growth. Is this growth stock worth considering today? I believe so. It has experienced quite a significant bounce since its April lows (Ackman's purchase was very well timed). But I still think the valuation's attractive at today's share price. At present, Wall Street expects Amazon to generate earnings per share of $6.17 for 2025. That puts the stock on a forward-looking price-to-earnings (P/E) ratio of about 33. That's high by UK standards but I don't think it's unreasonable given Amazon's phenomenal track record (it's delivered share price gains of about 25% a year over the last decade) and long-term growth potential. This is a company that's well positioned to benefit from the growth of a range of industries including online shopping, cloud computing, artificial intelligence (AI), digital advertising, video streaming, digital healthcare, space satellite broadband, and even self-driving cars. Other attractive features include its fortress balance sheet and huge cash flows. Last year, the company generated operating cash flow of a whopping $116bn (up about 36% year on year). I'll point out that while I'm bullish on Amazon, I don't expect the stock to rise in a straight line from here. Historically, the stock's been quite volatile and I expect to see continued ups and downs. Looking ahead, there are plenty of factors that could lead to weaker results and share price volatility including Donald Trump's tariffs, a consumer slowdown, less business spend on cloud computing/AI, and competition from Big Tech rivals. Taking a five-to-10 year view however, I see huge potential here. I reckon this stock can outperform the market by a wide margin over the long term and is worth a closer look. The post Billionaire Bill Ackman's been investing in one of my favourite S&P 500 growth stocks appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Edward Sheldon has positions in Amazon. The Motley Fool UK has recommended Amazon. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Upturn
an hour ago
- Business Upturn
The Week That Was, June 1 to June 7, 2025: RBI cuts repo rate by 50 bps, BEL secures Rs 2,323 crore order, Musk-Trump feud escalates, Coal India signs MoU for rail infra
In a week marked by major policy announcements, strategic deals, and sectoral movements, the Reserve Bank of India (RBI) took centre stage by delivering a surprise 50 basis points rate cut on June 6, bringing the repo rate down to 5.50%. This marked the third straight reduction in 2025, totaling a 100 bps cut to support growth amid global uncertainty. RBI Governor Sanjay Malhotra signaled continued comfort with inflation, lowering the CPI forecast for FY26 to 3.7% from 4% and retaining GDP growth expectations at 6.5% for the year. In a liquidity-boosting move, the central bank also slashed the Cash Reserve Ratio (CRR) by 100 bps to 3%, to be implemented in four tranches between September and November, unlocking ₹2.5 lakh crore into the banking system. Further, the RBI raised the loan-to-value (LTV) cap for small gold loans up to ₹2.5 lakh from 75% to 85%, a move that significantly benefited gold financing stocks. Among corporate highlights, the RBI gave a clean regulatory signal to IndusInd Bank, affirming its accounting standards, which pushed its shares up by over 5%. Infrastructure firm Ashoka Buildcon, however, faced a setback as its ₹1,673 crore project under CIDCO's NAINA initiative encountered execution hurdles. In the energy and defense sectors, Coal India signed a key MoU with Indian Port Rail & Ropeway Corporation to develop rail infrastructure, while GRSE expanded its global presence by signing MoUs in Sweden and Denmark for cruise vessel and marine propulsion collaboration. Similarly, Bharat Electronics Limited (BEL) secured orders worth ₹2,323 crore from MDL and GRSE, strengthening its defense manufacturing portfolio. JSW Energy exited Beempow Energy for ₹302.66 crore, completing a strategic realignment, and RailTel bagged a ₹274 crore ITMS project in Maharashtra's Vidarbha Circle, aimed at enhancing road safety across blackspots and accident-prone zones. Meanwhile, KEC International won ₹2,211 crore worth of new orders across international T&D, pipelines, and cable supply businesses, reinforcing its infrastructure footprint in the Middle East and Africa. In the equity markets, Gravita India surged 4% on expectations of a government-backed critical mineral recycling scheme. Tata Investment gained 8% on reports of Tata Capital's impending IPO, while shares of ICICI Lombard and Go Digit also moved higher as the government weighed a 25% hike in third-party motor insurance premiums. Lastly, global cues remained mixed. While Asian markets were relatively steady, U.S. indices such as Nasdaq and S&P 500 dipped amid fresh tariff tensions and a high-profile online spat between Elon Musk and Donald Trump—an episode that dented Tesla's valuation and contributed to market volatility. Overall, the week was dominated by aggressive monetary easing, strong defense-industry momentum, and corporate actions that may shape the economic narrative for the weeks ahead. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
4 hours ago
How major US stock indexes fared Friday, 6/6/2025
Stocks rose on Wall Street following a better-than-expected report on the U.S. job market. The S&P 500 climbed 1% Friday, marking its second weekly gain in a row. The Dow Jones Industrial Average added 1%, and the Nasdaq composite rose 1.2%. U.S. employers slowed their hiring last month, but still added a solid 139,000 jobs amid uncertainty over President Donald Trump's trade wars. Lululemon Athletica sank after lowering its profit forecast for the full year. On Friday: The S&P 500 rose 61.06 points, or 1%, to 6,000.36. The Dow Jones Industrial Average rose 443.13 points, or 1%, to 42,762.87. The Nasdaq composite rose 231.50 points, or 1.2%, to 19,529.95. The Russell 2000 index of smaller companies rose 34.89 points, or 1.7%, to 2,132.25. For the week: The S&P 500 is up 88.67 points, or 1.5%. The Dow is up 492.80 points, or 1.2%. The Nasdaq is up 416.19 points, or 2.2%. The Russell 2000 is up 65.96 points, or 3.2%. For the year: The S&P 500 is up 118.73 points, or 2%. The Dow is up 218.65 points, or 0.5%. The Nasdaq is up 219.16 points, or 1.1%. The Russell 2000 is down 97.91 points, or 4.4%.
