NetApp Earnings: Short on Revenues, Stock Crushed Badly
S&P 500 (NYSE:SPY) component NetApp Inc. (NASDAQ:NTAP) reported net income above Wall Street’s expectations for the fourth quarter. NetApp supplies enterprise storage and data management software and hardware products and services.
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NetApp Inc. Earnings Cheat Sheet
Results: Net income for the computer-storage development rose to $180.7 million (47 cents per share) vs. $160.6 million (40 cents per share) in the same quarter a year earlier. This marks a rise of 12.5% from the year-earlier quarter.
Revenue: Rose 19.2% to $1.7 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: NetApp Inc. reported adjusted net income of 66 cents per share. By that measure, the company beat the mean estimate of 49 cents per share. Analysts were expecting revenue of $1.68 billion.
Quoting Management: “With a strong product offering and well established partner ecosystem, NetApp delivered our ninth consecutive quarter of over 20% year-over-year product revenue growth. Our ability to generate cash remains robust as the fourth quarter was our best ever quarter in terms of cash flow from operations,” said Tom Georgens, president and CEO. “As the innovation leader in the industry, and the only company offering a unified scale out platform, we are the clear choice for enterprises as they re-architect their data centers to provide agility while reducing complexity and cost.”
The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 39 cents versus a mean estimate of net income of 44 cents per share.
Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 45 cents. For the fiscal year, the average estimate has been unchanged at $1.81 a share.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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