Nutanix stock tanks after weak earnings forecast

Shares of Nutanix Inc. plunged 20% in aftermarket trading Wednesday after the software company issued a disappointing forecast in conjunction with its latest earnings report. Nutanix posted a net loss of $217.6 million, or $1.13 a share, compared with a loss of $122.8 million, or 68 cents a share, in the year-prior quarter. The company's adjusted loss per share came in at 60 cents compared with 23 cents a year earlier. Analysts surveyed by FactSet were modeling 69 cents. Nutanix's revenue for the quarter rose to $346.8 million from $335.4 million, while analysts had been calling for $341.5 million. For the third quarter, Nutanix expects an adjusted loss per share of 89 cents, as well as revenue from software and support total contract value (TCV) of $300 million to $320 million. Analysts were expecting an adjusted loss of 74 cents a share and revenue for software and support (TCV) of $352 million. For the full fiscal year, Nutanix models software and support (TCV) revenue of $1.29 billion to $1.36 billion, while analysts had been looking for $1.395 billion. Shares have added about 4% so far this year, through Wednesday's close, compared with a 3.5% drop for the S&P 500 over the same span.

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