Nutanix Inc. (NTNX - Free Report) is scheduled to report second-quarter fiscal 2018 earnings on May 24. Notably, the company beat the Zacks Consensus Estimate for earnings in the trailing four quarters, with an average positive surprise of 21.8%. In the previous quarter, the company delivered a positive earnings surprise of 33.3%.
Let’s take a look at how things are shaping up for the upcoming announcement.
Factors to Consider
A growing customer base with the addition of prominent names is expected to drive Nutanix’s growth. The company added 1057 customers taking the total end-customer count to 8,870 at the end of the second quarter of fiscal 2018. The number of deals, worth more than $1 million, jumped 104% year over year to 57.
The company’s acquisitions have also benefited its top line. Notably, during the quarter, the company announced its intentions to acquire Netsil and Minjar. These buyouts are anticipated to strengthen Nutanix’s product offerings, thereby impacting revenue growth positively.
Nutanix’s focus on becoming an enterprise cloud operating systems company is expected to drive growth. The company’s focus on software portion of the business will positively impact gross margin.
Additionally, the company’s enhanced channel program initiatives and extended software license offerings with Dell EMC are also expected to accelerate enterprise cloud adoption.
What the Zacks Model Unveils
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided.
Nutanix has a Zacks Rank #3 and an Earnings ESP of +2.98%. This indicates that the company is likely to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With a Favorable Combination
Here are some companies you may also want to consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming release.
NetApp, Inc. (NTAP - Free Report) has an Earnings ESP of +2.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DXC Technology Company. (DXC - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank #2.
Box, Inc. (BOX - Free Report) has an Earnings ESP of +1.37% and a Zacks Rank #3.
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Nutanix Inc. (NTNX - Free Report) is scheduled to report second-quarter fiscal 2018 earnings on May 24. Notably, the company beat the Zacks Consensus Estimate for earnings in the trailing four quarters, with an average positive surprise of 21.8%. In the previous quarter, the company delivered a positive earnings surprise of 33.3%.
Let’s take a look at how things are shaping up for the upcoming announcement.
Factors to Consider
A growing customer base with the addition of prominent names is expected to drive Nutanix’s growth. The company added 1057 customers taking the total end-customer count to 8,870 at the end of the second quarter of fiscal 2018. The number of deals, worth more than $1 million, jumped 104% year over year to 57.
The company’s acquisitions have also benefited its top line. Notably, during the quarter, the company announced its intentions to acquire Netsil and Minjar. These buyouts are anticipated to strengthen Nutanix’s product offerings, thereby impacting revenue growth positively.
Nutanix’s focus on becoming an enterprise cloud operating systems company is expected to drive growth. The company’s focus on software portion of the business will positively impact gross margin.
Additionally, the company’s enhanced channel program initiatives and extended software license offerings with Dell EMC are also expected to accelerate enterprise cloud adoption.
What the Zacks Model Unveils
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided.
Nutanix has a Zacks Rank #3 and an Earnings ESP of +2.98%. This indicates that the company is likely to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With a Favorable Combination
Here are some companies you may also want to consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming release.
NetApp, Inc. (NTAP - Free Report) has an Earnings ESP of +2.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DXC Technology Company. (DXC - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank #2.
Box, Inc. (BOX - Free Report) has an Earnings ESP of +1.37% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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