Nutanix plunges as supply chain challenges impact outlook
By Sam Boughedda
Investing.com — Cloud Computing Company Stock Nutanix Inc. (NASDAQ:) plunged into extended trading on Wednesday after saying increased supply chain delays with hardware partners had impacted its outlook.
The company posted an adjusted loss per share of $0.05 on revenue of $403.7 million, beating forecasts of a loss of $0.22 per share on revenue of $397.88 million.
“Our third quarter reflected strong and continued execution, demonstrating strong year-over-year improvement in revenue and net income,” said Rajiv Ramaswami, president and CEO of Nutanix.
However, the company expects fourth-quarter tax revenue of between $340 million and $360 million, below the $439.5 million forecast. For fiscal 2022, it forecast revenue between $1.535 billion and $1.555 billion, again below forecast.
Nutanix stock fell 28% in response.
“At the end of the third quarter, we saw an unexpected impact from the challenges that limited our growth potential during the quarter and affected our outlook for the fourth quarter. Increased supply chain delays with our partners materials accounts for the vast majority of the impact on our outlook, and higher than expected sales rep attrition in the third quarter was also a factor,” added Ramaswami.