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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