
Nimble Storage (NMBL) Stock Plummets on Earnings Miss
NEW YORK (TheStreet) -- Nimble Storage (NMBL) stock is dropping 47.38% to $10.73 in early-morning trading on Friday, after the company's fiscal 2016 third quarter earnings results missed analysts' expectations.
After the market close on Thursday, the San Jose, CA-based company, which provides a data storage platform, reported a loss of 14 cents per share. Revenue increased 37% year over year to $80.7 million. However, analysts were expecting the company to report a loss of 8 cents per share on revenue of $87.7 million.
Additionally, Nimble projected a fiscal 2016 fourth quarter loss of 11 cents per share to loss of 13 cents per share.
"While we are acquiring large enterprise customers at a strong pace, our enterprise investments are taking longer to become fully productive," CEO Suresh Vasudevan said in a statement. "The shift in investment from commercial to enterprise business impacted our commercial revenue growth more than we anticipated."
Nimble will make several investments to drive growth that will reduce short-term profitability, Vasudevan added.
Separately, TheStreet Ratings team rates NIMBLE STORAGE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate NIMBLE STORAGE INC (NMBL) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: NMBL
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