What happened
Never underestimate the power of a good quarter to move a company's stock in the right direction. This dynamic was apparent with NetApp (NTAP 0.64%) on Thursday, as its shares were trading more than 4% higher in late-afternoon action following the publication of its first-quarter 2022 figures.
So what
For the quarter, NetApp booked revenue of $1.46 billion, a 12% improvement year over year. Total billings saw a steeper rise (20%) across that stretch, to $1.38 billion. On an adjusted basis, net profit soared 61% to $263 million, or $1.15 per share.
Image source: Getty Images.
Those headline numbers exceeded analyst expectations, especially on the bottom line. The prognosticators following NetApp stock were collectively modeling $1.43 billion in revenue, and an adjusted per-share net profit of $0.95.
In its press release, the cloud services provider quoted CEO George Kurian as saying that the company enjoyed "strong revenue, gross margin, and operating leverage across the entire business."
"Cloud and digital transformation initiatives remain top customer priorities," he added.
Now what
It's likely NetApp had those dynamics firmly in mind when gazing into its crystal ball.
The company has raised its top-line and profitability guidance for the entirety of fiscal 2022, estimating that net revenue will grow by 8% to 9%, with adjusted earnings coming in at $4.85 to $5.05 per share.
Happily, the latter range well exceeds both the average analyst estimate of $4.59, and the fiscal 2021 profit of $4.06.
