Nutanix (NTNX) Reports Q2: Everything You Need To Know Ahead Of Earnings

Hybrid multicloud computing company Nutanix (NASDAQ:NTNX) will be reporting earnings this Wednesday after market hours. Here’s what to look for.

Nutanix beat analysts’ revenue expectations last quarter, reporting revenues of $703.1 million, up 10% year on year. It was a strong quarter for the company, with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ adjusted operating income estimates.

Is Nutanix a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Nutanix’s revenue to grow 13% year on year, slowing from the 19.2% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Nutanix rarely misses Wall Street’s revenue estimates.

Looking at Nutanix’s peers in the software development segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Datadog delivered year-on-year revenue growth of 35.6%, beating analysts’ expectations by 3.9%, and Dynatrace reported revenues up 16.2%, topping estimates by 0.9%. Datadog traded down 17.4% following the results while Dynatrace was up 6.9%.

Read our full analysis of Datadog’s results here and Dynatrace’s results here.

There has been positive sentiment among investors in the software development segment, with share prices up 15.7% on average over the last month. Nutanix is up 17.5% during the same time and is heading into earnings with an average analyst price target of $62.38 (compared to the current share price of $66.76).

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