NetApp (Nasdaq: NTAP) reported earnings on Aug. 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 27 (Q1), NetApp met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Revenue details
NetApp booked revenue of $1.44 billion. The 32 analysts polled by S&P Capital IQ expected a top line of $1.46 billion on the same basis. 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
EPS came in at $0.42. The 32 earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. 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.
Margin details
For the 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
Next quarter's average estimate for revenue is $1.54 billion. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $6.37 billion. The average EPS estimate is $2.04.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 570 members out of 644 rating the stock outperform, and 74 members rating it underperform. Among 146 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 130 give NetApp a green thumbs-up, and 16 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.
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