NetApp Up after Results

Shares of NetApp, Inc. (NASDAQ:NTAP) are up over 6% in morning trade after the company reported third quarter fiscal year 2012 profits and revenues in line with analyst estimates. Revenues for the third quarter of fiscal year 2012 totaled $1.566 billion compared to revenues of $1.290 billion for the same period one year ago. This was in line with analyst estimates.

Adjusted net income for the third quarter of fiscal year 2012 was $216 million, or $0.58 per share, compared to adjusted net income of $226 million, or $0.56 per share, for the same period a year ago.

Revenues for the first nine months of fiscal year 2012 totaled $4.531 billion compared to revenues of $3.694 billion for the first nine months of the prior fiscal year, an increase of 23% year over year. Adjusted net income for the first nine months of fiscal year 2012 totaled $674 million, or $1.75 per share, compared to adjusted net income of $629 million, or $1.61 per share for the first nine months of the prior fiscal year.

The company also said for the fourth quarter of fiscal year 2012 revenue will be in the range of $1.645 billion to $1.725 billion which is in line with analyst consensus estimates of $1.68 billion. It expects its adjusted earnings to be between 60 and 65 cents per share during the current quarter in line with consensus forecasts of 63 cents per share.

“More and more customers are leveraging storage virtualization to re-architect their data centers in order to gain efficiency, flexibility and cost savings, and NetApp provides the most compelling value proposition in the industry for both private and public cloud deployments,” said Tom Georgens, president and CEO. “Our success is evident in our results, as NetApp won a record number of new customers, significantly increased our units shipped — including a record number of high-end systems, and saw solid revenue growth across almost all geographies in our third quarter.”

Janney Capital Markets analyst Bill Choi said the guidance stoked a “relief rally,” because analysts were worried the company would predict net income well below current expectations. Investors had gotten skittish about the stock after the company missed expectations over the last two quarters, Choi said.

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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.