Nutanix Inc. , one of the hottest tech IPOs of 2016, plunged more than 17% Thursday after its second earnings report as a public company issued a forecast that didn’t meet Wall Street’s expectations. The company, which sells cloud computing resources focused on combining storage and computing power, reported a net loss of $93.2 million, or 66 cents a share, on sales of $182.2 million. After adjusting for stock-based compensation, the company claimed a loss of 28 cents a share. That performance in the company’s second fiscal quarter easily beat analysts’ estimates of adjusted losses of 35 cents a share on sales of $178.4 million, according to FactSet. Nutanix’s forecast for the current quarter did not meet expectations, however. The company said it expects adjusted losses of 45 cents to 48 cents a share in the fiscal third quarter on revenue of $180 million to $190 million. Analysts on average projected adjusted losses of 35 cents a share on sales of $188.5 million, FactSet reported. Nutanix Chief Financial Officer Duston Williams noted in the announcement that increased costs of some components were affecting the company’s costs; Hewlett Packard Enterprise Co. said in its earnings call last week that increased prices for some memory chips had affected its results. Nutanix, which also suffered after its first earnings report as a public company, fell lower than $26 in late trading after closing with a 1.3% gain at $31.12.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News