NEW YORK (TheStreet) -- Nimble Storage Inc. (NMBL) reported better than expected earnings results for the fiscal 2015 fourth quarter but the stock is declining by 8.72% to $25.03 on heavy volume in late morning trading on Friday, as a result of the company's fiscal 2016 first quarter earnings per share guidance, which came in below what analysts were expecting for the period.
Nimble Storage, a data storage platform provider, said it is expected a non-GAAP earnings per share loss in the range of 13 cents to 14 cents per share for the fiscal 2016 first quarter, wider than the loss of 12 cents per share analysts had predicted.
For the most recent quarter Nimble Storage said its non-GAAP net loss was $9.8 million, or 13 cents per diluted share on $68.3 million in revenue.
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Analysts had estimated for an earnings loss of 14 cents per share on revenue of $66.6 million for the fiscal 2015 fourth quarter.
"As we look back on fiscal year 2015 and Q4 of 2015 in particular, we are convinced that we are now reaching an inflection point as enterprises of all sizes and service providers are concluding that the economic benefits of a modern architecture justify the risks of moving away from long-standing incumbent vendor relationships. We see this as the beginning of a secular share shift that presents a massive growth opportunity for us over the next several years," company CEO Suresh Vasudevan said in a statement.
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 a number of negative factors, 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 feeble growth in its earnings per share and deteriorating net income."
You can view the full analysis from the report here: NMBL Ratings ReportNMBL data by YCharts