NetApp's Upcoming Earnings: What You Need To Know

NetApp (Nasdaq: NTAP  ) is expected to report Q2 earnings on Nov. 14. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict NetApp's revenues will grow 2.1% and EPS will compress -23.8%.

The average estimate for revenue is $1.54 billion. On the bottom line, the average EPS estimate is $0.48.

Revenue details
Last quarter, NetApp recorded revenue of $1.44 billion. GAAP reported sales were 0.9% lower than the prior-year quarter's $1.46 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.42. GAAP EPS of $0.17 for Q1 were 50% lower than the prior-year quarter's $0.34 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 58.8%, 270 basis points worse than the prior-year quarter. Operating margin was 5.6%, 660 basis points worse than the prior-year quarter. Net margin was 4.4%, 520 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $6.36 billion. The average EPS estimate is $2.08.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 567 members out of 641 rating the stock outperform, and 74 members rating it underperform. Among 151 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 132 give NetApp a green thumbs-up, and 19 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NetApp is outperform, with an average price target of $35.16.

Looking to profit from the makers of computer hardware? You may be missing something obvious about where the money will be made in the tech industry of the future. Is NetApp on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 13, 2012, at 1:18 AM, chris293 wrote:

    The price now is about $26 not $35+, is this really a fool's idea of something good? Even the earning don't look good for this year.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2108859, ~/Articles/ArticleHandler.aspx, 4/1/2015 10:32:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...