NetApp Inc. Earnings Cheat Sheet: Reports Loss in Profit

S&P 500 (NYSE:SPY) component NetApp Inc. (NASDAQ:NTAP) reported a loss in profit in the second quarter. NetApp supplies enterprise storage and data management software and hardware products and services.

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NetApp Earnings Cheat Sheet for the Second Quarter

Results: Net income for NetApp Inc. rose to $165.6 million (44 cents per share) vs. $175.4 million (45 cents per share) in the same quarter a year earlier. This marks a dip of 6% from the year earlier quarter.

Revenue: Fell to $1.02 billion.

Actual vs. Wall St. Expectations: NTAP fell short of the mean analyst estimate of 49 cents per share. It fell short of the average revenue estimate of $1.53 billion.

Quoting Management: “NetApp produced record non-GAAP earnings per share in the second quarter. In aggregate, we saw strong revenue growth across most areas of our business, offset by some unexpected weakness in a handful of our largest accounts,” said Tom Georgens, president and CEO. “NetApp achieved the highest number of net new customer wins in more than two and a half years this quarter, and in our ‘Smart Decisions are Built on NetApp’ campaign we just launched the new FAS2000 series platform built on our Data ONTAP 8.1 operating system-all of which will drive market share gains going forward.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 32.7%.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 2 cents with net income of 44 cents versus a mean estimate of net income of 46 cents per share.

Net income has increased 32.9% year over year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 72% from the year earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 52 cents per share, down from 55 cents ninety days ago. The average estimate for the fiscal year is $2.02 per share, down from $2.14 ninety days ago.

Competitors to Watch: EMC Corporation (NYSE:EMC), Dot Hill Systems Corp. (NASDAQ:HILL), Overland Storage, Inc. (NASDAQ:OVRL), Quantum Corporation (NYSE:QTM), ADPT Corporation (ADPT), Xyratex Ltd. (NASDAQ:XRTX), Seagate Technology PLC (NASDAQ:STX), Western Digital Corp. (NYSE:WDC), Brocade Communications Systems, Inc. (NASDAQ:BRCD), and Intl. Business Machines Corp. (NYSE:IBM).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)