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Shareholders of Nutanix, Inc. (NASDAQ:NTNX) will be pleased this week, given that the stock price is up 10% to US$76.89 following its latest quarterly results. It looks like a credible result overall - although revenues of US$655m were what the analysts expected, Nutanix surprised by delivering a (statutory) profit of US$0.19 per share, an impressive 34% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Nutanix
Taking into account the latest results, the consensus forecast from Nutanix's 16 analysts is for revenues of US$2.51b in 2025. This reflects a notable 8.3% improvement in revenue compared to the last 12 months. Nutanix is also expected to turn profitable, with statutory earnings of US$0.22 per share. In the lead-up to this report, the analysts had been modelling revenues of US$2.46b and earnings per share (EPS) of US$0.20 in 2025. So the consensus seems to have become somewhat more optimistic on Nutanix's earnings potential following these results.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.1% to US$88.57. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Nutanix, with the most bullish analyst valuing it at US$100.00 and the most bearish at US$73.11 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Nutanix's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nutanix to grow faster than the wider industry.