On May 27, Nutanix Inc. rose 10.48% in after-hours trading, reaching $50.7/share, with trading volume of $3.74 million. The surge came immediately after the company released its quarterly earnings report following the regular session close.
Heading into the earnings week, consensus estimates called for revenue of $686 million (up 9.64% YoY) and adjusted EPS of $0.36 (down 5.90% YoY), with clear pressure on the profitability side. The stock had already retreated over 6% in prior sessions as investors pre-positioned for the anticipated EPS decline, with some funds electing to reduce exposure ahead of the report. The company maintains a balanced revenue structure, with product revenue of $387 million and support/services revenue of $335 million, representing combined growth of 10.40% YoY. EBIT was projected at $116 million, up 4.18% YoY.
The sharp after-hours rebound suggests actual results exceeded the cautious expectations that had been priced in, with previously risk-averse capital likely accelerating position rebuilding following the release.
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