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NetApp Q2 Guidance Cautious, Shares Fall (ntap)

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Data storage company, NetApp Inc. (NASDAQ: NTAP) said on Wednesday that fiscal first quarter income increased 28%, aided by the recent launch of its OnTap operating system as well as stronger sales of its branded products.

Nonetheless, shares fell almost 3.50% in aftermarket hours as the Company handed weaker-than-expected guidance for the fiscal second quarter.

For the fiscal first quarter ended July 26, NetApp reported a net income of $81.6 million or 23 cents a share compared to a profit of $63.8 million or 17 cents a share, in the same quarter of last year.

Stripping out onetime items, adjusted earnings stood at 53 cents a share, which was 4 cents more than Street’s expectation, according to a data compiled by FactSet.

Consolidated revenue climbed 5.5% to $1.52 billion, slightly below analysts’ forecast for $1.53 billion.

Speaking to analysts in a conference call, NetApp’s Chief Financial Officer, Nick Noviello said that the sales of branded equipment rose 9% in the fiscal first quarter (those products that are sold under namesake brand) due to stronger demand for its products from mobile technology and cloud computing markets.

“The cloud and mobility trends are growing. The cloud is a big factor in terms of enabling our customers, as we need to help them manage data across all these environments,” said Noviello.

For the current quarter, the Company expects adjusted earnings to be in the range of 60 to 65 cents a share on revenue of $1.56 billion to $1.66 billion. Analysts’ consensus forecast was for earnings of 63 cents on revenue of $1.62 billion.

 








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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