Why Nutanix Stock Surged Today

By Evan Niu, CFA Markets Fool.com

What happened

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Shares of Nutanix (NASDAQ: NTNX) have surged today, up by 11% as of 1:15 p.m. EDT, after the company reported solid fiscal third-quarter earnings results.

So what

The IT hyperconverged infrastructure company posted revenue of $191.8 million, up 67% year over year, and a non-GAAP net loss of $60.8 million, or $0.42 per share. Both top- and bottom-line results came in better than the consensus estimates of $187 million in revenue and an adjusted loss of $0.45 per share. Billings jumped 47% to $234.1 million, and Nutanix ended the quarter with nearly 6,200 customers.

Image source: Getty Images.

Now what

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Investors reacted much more favorably this time compared to last quarter's plunge. In a statement, CEO Dheeraj Pandey said, "We continue to execute on our strategy of building a cloud operating system that provides our customers maximum choice of hardware platforms." Nutanix also recently partnered with IBM to develop a turnkey hyperconverged solution that leverages Nutanix software with IBM Power Systems.

In terms of guidance, revenue in the fiscal fourth quarter is expected in the range of $215 million to $220 million, with non-GAAP gross margin of roughly 58%. Non-GAAP net loss per share should be $0.38.

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Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.