NetApp Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component NetApp (NASDAQ:NTAP) will unveil its latest earnings on Wednesday, November 16, 2011. NetApp supplies enterprise storage and data management software and hardware products and services.

NetApp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 49 cents per share, a rise of 14% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 51 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 49 cents during the last month. Analysts are projecting profit to rise by 14.8% versus last year to $2.02.

Past Earnings Performance: Last quarter, the company missed estimates by 2 cents, coming in at profit of 44 cents per share versus a mean estimate of net income of 46 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 3 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.53 billion in revenue this quarter, a rise of 26.4% from the year ago quarter. Analysts are forecasting total revenue of $6.39 billion for the year, a rise of 24.8% from last year’s revenue of $5.12 billion.

Analyst Ratings: Analysts are bullish on this stock with 22 analysts rating it as a buy, none rating it as a sell and nine rating it as a hold.

A Look Back: In the first quarter, profit fell 1.6% to $139.5 million (34 cents a share) from $141.8 million (38 cents a share) the year earlier, missing analyst expectations. Revenue rose 28.2% to $1.46 billion from $1.14 billion.

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 28.7%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 32.7% from the year earlier quarter.

The decrease in profit in the first quarter broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 33.8% in the fourth quarter of the last fiscal year, 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 September 15, 2011 to November 10, 2011, the stock price had risen $3.82 (10%) from $38.07 to $41.89. The stock price saw one of its best stretches over the last year between February 3, 2011 and February 11, 2011 when shares rose for seven-straight days, rising 6.3% (+$3.59) 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 $13.07 (-23.8%) year to date.

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

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