Stock Market Watch

NetApp Shares Plunge on Weak Q2 Revenue, Outlook (NTAP)

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Shares of NetApp Inc. (NASDAQ: NTAP), a provider of storage and data management solutions, are sinking in pre-market trading today after the Sunnyvale, California-based company reported mixed second-quarter financial results and provided weaker than expected outlook for the third quarter.

NetApp shares are down 9.38% to $36.92 in pre-market trading today.


NetApp , which has a portfolio of application, virtualization, cloud and service provider solutions, reported second-quarter adjusted earnings of $235.5 million, or $0.63 per share, above analysts’ estimate of $0.60 per share. However, the company’s second-quarter revenue fell short of Street estimates. The company reported second-quarter revenue of $1.51 billion, compared with analysts’ estimate of $1.55 billion.

On a GAAP basis, the company reported net income of $165.6 million.

Tom Georgens, President and CEO of NetApp, said that the company produced record non-GAAP earnings per share in the second quarter. Georgens further said that in aggregate, the company saw strong revenue growth across most areas of its business, offset by some unexpected weakness in a handful of its largest accounts. Georgens also said that the company achieved highest number of net new customer wins in more than two and a half years in the second quarter.

For the third quarter, NetApp expects revenue to come in between $1.52 billion and $1.61 billion, which equates to a 1% to7% sequential growth. Analysts currently expect the company’s third-quarter revenue to come in at $1.65 billion. The company expects earnings per share on a non-GAAP basis to come in between $0.56 and $0.60, which is once again below Street estimates of $0.63 per share. GAAP earnings per share are expected to come in between $0.36 and $0.40 in the third quarter.

NetApp shares have fallen more than 25% this year, compared with a decline of 0.50% for the Nasdaq.

 

edliston
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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