NetApp, Inc. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component NetApp, Inc. (NASDAQ:NTAP) will unveil its latest earnings on Wednesday, August 17, 2011. NetApp, Inc. supplies enterprise storage and data management software and hardware products and services.

NetApp, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 45 cents per share, a rise of 15.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 40 cents. Between one and three months ago, the average estimate moved up, but it has been unchanged at 45 cents during the last month. For the year, analysts are projecting net income of $2.15 per share, a rise of 22.2% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting profit of 47 cents per share against a mean estimate of net income of 44 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.51 billion in revenue this quarter, a rise of 32.5% from the year ago quarter. Analysts are forecasting total revenue of $6.74 billion for the year, a rise of 31.6% from last year’s revenue of $5.12 billion.

Analyst Ratings: Analysts are bullish on this stock with 27 analysts rating it as a buy, none rating it as a sell and 10 rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 30.7%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 35.8% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 33.8% while it rose 59.9% in the third quarter of the last fiscal year and 72% in the second quarter of the last fiscal year.

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).

Stock Price Performance: During May 17, 2011 to August 12, 2011, the stock price had fallen $8.86 (-16.9%) from $52.28 to $43.42. The stock price saw one of its best stretches over the last year between October 28, 2010 and November 10, 2010 when shares rose for 10-straight days, rising 7.7% (+$4.09) over that span. It saw one of its worst periods between January 14, 2011 and January 25, 2011 when shares fell for seven-straight days, falling 9.7% (-$5.78) over that span. Shares are down $11.54 (-21%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.