NetApp Set to Announce Q3 Earnings Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy NTAP?
Source: seekingalpha
- Earnings Announcement Date: NetApp (NTAP) is scheduled to release its Q3 earnings on February 26th after market close, with consensus EPS estimates at $2.06, reflecting a 7.9% year-over-year increase, and revenue estimates at $1.7 billion, indicating a 3.7% year-over-year growth, suggesting stable growth potential in both revenue and profitability.
- Historical Performance Review: Over the past two years, NetApp has exceeded EPS and revenue estimates 88% of the time, demonstrating consistency and reliability in financial performance, although recent market sentiment appears pessimistic.
- Expectation Revision Dynamics: In the last three months, EPS estimates for NetApp have seen 8 upward revisions and 9 downward revisions, while revenue estimates have experienced 4 upward revisions and 11 downward revisions, reflecting market uncertainty regarding the company's future performance, which may impact investor confidence.
- Market Sentiment Analysis: Despite the pessimistic outlook for NetApp's earnings, Wedbush suggests that concerns may be overstated, while Morgan Stanley downgraded NetApp and others due to CIOs cutting hardware budgets, highlighting the challenges faced by the industry as a whole.
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Analyst Views on NTAP
Wall Street analysts forecast NTAP stock price to rise
19 Analyst Rating
6 Buy
13 Hold
0 Sell
Moderate Buy
Current: 99.030
Low
110.00
Averages
124.21
High
137.00
Current: 99.030
Low
110.00
Averages
124.21
High
137.00
About NTAP
NetApp, Inc. is an intelligent data infrastructure company combining unified data storage, integrated data, operational and workload services. It creates silo-free infrastructure, harnessing observability and AI to enable data management. Its operational and workload services provide continuous optimization of performance and efficiency for infrastructure and workloads through observability and AI. Its Hybrid Cloud segment provides a unified data storage portfolio of storage management and infrastructure solutions that helps customers modernize their data centers. Hybrid Cloud includes software, hardware, and related support, along with professional and other services. Its Public Cloud segment offers a portfolio of products delivered primarily as-a-service, including related support. This portfolio includes cloud storage, data services and operational services. These solutions and services are available in the public clouds, including Amazon AWS, Microsoft Azure, and Google Cloud.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in AI Customers: Approximately 300 customers have chosen NetApp as their AI data storage foundation, indicating the company's appeal in the AI market, particularly with the strong early momentum of its new AFX and AI Data Engine (AIDE).
- Record All-Flash Array Revenue: All-flash array revenue reached $1 billion, growing 11% year-over-year, while Keystone's storage-as-a-service revenue saw a remarkable 65% increase, further solidifying NetApp's leadership in the storage market.
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- Profitability Improvement: The company reported GAAP earnings per share of $1.67 and record non-GAAP earnings per share of $2.12, showcasing successful cost control and operational efficiency, which may attract more institutional investors.
- Strong Cloud Performance: Public Cloud revenue stood at $174 million, driven by a 27% year-over-year growth, highlighting NetApp's increasing competitiveness in the cloud storage market and aiding its expansion in the rapidly growing cloud computing sector.
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See More
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- Live Webcast Access: Investors can access the live webcast of the earnings call by logging onto NetApp's investor relations website, ensuring broad participation and transparency, thereby enhancing communication with shareholders.
- Market Reaction Anticipation: This earnings call is poised to deliver critical financial data and management insights, which could influence NetApp's stock price movement, especially given the market's high expectations for its performance.
- Strategic Communication: Through this call, NetApp will have the opportunity to articulate its future strategic direction and market positioning, further bolstering investor confidence in its long-term growth potential.
See More
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