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Nutanix (NTNX) International Revenue in Focus: Trends and Expectations

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Have you evaluated the performance of Nutanix's (NTNX - Free Report) international operations for the quarter ending April 2024? Given the extensive global presence of this enterprise cloud platform services provider, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

Our review of NTNX's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter stood at $524.58 million, increasing 16.9% year over year. Now, let's delve into NTNX's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Exploring NTNX's International Revenue Patterns

Of the total revenue, $82.5 million came from Asia Pacific during the last fiscal quarter, accounting for 15.7%. This represented a surprise of -7.36% as analysts had expected the region to contribute $89.06 million to the total revenue. In comparison, the region contributed $79.2 million, or 14%, and $77.74 million, or 17.3%, to total revenue in the previous and year-ago quarters, respectively.

Other Americas generated $11.17 million in revenues for the company in the last quarter, constituting 2.1% of the total. This represented a surprise of -17.21% compared to the $13.49 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other Americas accounted for $10.32 million (1.8%), and in the year-ago quarter, it contributed $12.76 million (2.8%) to the total revenue.

Europe, the Middle East and Africa accounted for 28.0% of the company's total revenue during the quarter, translating to $147.07 million. Revenues from this region represented a surprise of +18.25%, with Wall Street analysts collectively expecting $124.37 million. When compared to the preceding quarter and the same quarter in the previous year, Europe, the Middle East and Africa contributed $121.56 million (21.5%) and $124.25 million (27.7%) to the total revenue, respectively.

Prospective Revenues in International Markets

The current fiscal quarter's total revenue for Nutanix, as projected by Wall Street analysts, is expected to reach $537.24 million, reflecting an increase of 8.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia Pacific is anticipated to contribute 17.2% or $92.47 million, Other Americas 2.7% or $14.22 million and Europe, the Middle East and Africa 24.7% or $132.72 million.

For the full year, the company is expected to generate $2.14 billion in total revenue, up 14.7% from the previous year. Revenues from Asia Pacific, Other Americas and Europe, the Middle East and Africa are expected to constitute 17.8% ($379.77 million), 3% ($64.44 million) and 24% ($512.74 million) of the total, respectively.

The Bottom Line

Nutanix's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

Nutanix currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in Nutanix's Stock Value

Over the past month, the stock has seen a decline of 17.8% in its value, whereas the Zacks S&P 500 composite has posted an increase of 2.9%. The Zacks Computer and Technology sector, Nutanix's industry group, has descended 4.8% over the identical span. In the past three months, there's been a decline of 16.8% in the company's stock price, against a rise of 5% in the S&P 500 index. The broader sector has declined by 2.9% during this interval.

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