NetApp Earnings: Here’s Why the Stock is Rising Now

NetApp, Inc. (NASDAQ:NTAP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.10%.

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NetApp, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.55% to $0.69 in the quarter versus EPS of $0.66 in the year-earlier quarter.

Revenue: Rose 0.82% to $1.72 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: NetApp, Inc. reported adjusted EPS income of $0.69 per share. By that measure, the company beat the mean analyst estimate of $0.68. It missed the average revenue estimate of $1.76 billion.

Quoting Management: “The fourth quarter was highlighted by a continued strong uptake of clustered Data ONTAP®, an expansion of our leadership position in Flash, and double digit growth in branded bookings,” said Tom Georgens, president and CEO. “We are also pleased to announce enhancements to our capital allocation program, reflecting our confidence in our underlying business as well as our commitment to enhancing shareholder value.”

Key Stats (on next page)…

Revenue increased 5.3% from $1.63 billion in the previous quarter. EPS increased 2.99% from $0.67 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.53 and has not changed. For the current year, the average estimate has moved up from a profit of $2.27 to a profit of $2.28 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)