The 10-second takeaway
For the quarter ended April 26 (Q4), NetApp missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share grew. GAAP earnings per share dropped.
Gross margins grew, operating margins dropped, net margins contracted.
NetApp tallied revenue of $1.72 billion. The 31 analysts polled by S&P Capital IQ expected to see revenue of $1.76 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.69. The 35 earnings estimates compiled by S&P Capital IQ anticipated $0.68 per share. Non-GAAP EPS of $0.69 for Q4 were 4.5% higher than the prior-year quarter's $0.66 per share. GAAP EPS of $0.47 for Q4 were 2.1% lower than the prior-year quarter's $0.48 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 60.1%, 170 basis points better than the prior-year quarter. Operating margin was 11.9%, 120 basis points worse than the prior-year quarter. Net margin was 10.1%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.60 billion. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $6.92 billion. The average EPS estimate is $2.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 560 members out of 635 rating the stock outperform, and 75 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 give NetApp a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NetApp is hold, with an average price target of $38.47.
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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 position in any of the stocks mentioned. 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.