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What: Shares of NetApp (NASDAQ:NTAP) surged by as much as 14% today after the company reported earnings last night.
So what: Revenue in the fiscal second quarter came in at $1.54 billion, with non-GAAP earnings per share of $0.51. The bottom-line result topped both the consensus estimate of $0.48 per share in adjusted profits as well as exceeding its own earnings guidance, despite a challenging macro environment.
Now what: Third-quarter guidance calls for sales in the range of $1.58 billion to $1.68 billion, with adjusted earnings per share of $0.53 to $0.58. NetApp also said it was acquiring storage solutions company CacheIQ for an undisclosed amount, while also increasing its share repurchase program authorization by $1.5 billion. Raymond James upgraded the stock to outperform with a $35 price target following the strong showing.
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