- NetApp Inc. increased its fiscal year adjusted earnings per share (EPS) forecast to $7.20 to $7.40, surpassing the previous forecast of $7 to $7.20. The current estimate stands at $7.11.
- The company’s projected net revenue is now between $6.54 billion to $6.74 billion, improving from the prior projection of $6.48 billion to $6.68 billion.
- NetApp expects an adjusted operating margin of 28% to 28.5%, an increase from the previous forecast of 27% to 28%.
- The adjusted gross margin is maintained between 71% to 72%.
- For the third quarter, NetApp forecasts net revenue of $1.61 billion to $1.76 billion, aligned with an estimate of $1.68 billion.
- Forecasts for Q3 adjusted EPS are $1.85 to $1.95, matching the estimate of $1.85.
- In the second quarter, NetApp’s adjusted EPS was $1.87, compared to $1.58 year-over-year (y/y) and exceeding the estimate of $1.78.
- Net revenue for Q2 was reported at $1.66 billion, marking a 6.1% increase y/y, above the estimate of $1.64 billion.
- Hybrid cloud net revenue grew by 5.8% y/y to $1.49 billion, in line with estimates.
- Product revenue reached $768 million, an 8.8% rise y/y, slightly below the estimate of $769.8 million.
- Support revenue was $635 million, increasing by 1.9% y/y, surpassing the estimate of $633.5 million.
- Public cloud net revenue increased by 9.1% y/y to $168 million, exceeding the estimate of $164.3 million.
- The adjusted gross margin for Q2 stood at 72%, consistent with the previous year, and slightly higher than the estimate of 71.6%.
- NetApp’s EPS for Q2 was $1.42, compared to $1.10 y/y.
- CEO George Kurian stated that Q2’s strong performance was fueled by record-breaking all-flash storage sales and robust cloud storage service performance.
- Analyst ratings include 6 buys, 14 holds, and 1 sell.
Netapp Inc on Smartkarma
On Smartkarma, independent analysts like Baptista Research provide insightful coverage on NetApp Inc. According to Baptista Research, NetApp has started Fiscal Year 2025 strongly, showing robust financial performance and effective strategic implementation despite economic challenges. The company reported an impressive 8% year-over-year revenue growth in the first quarter, along with record figures for operating margin and earnings per share. This positive performance has led NetApp to revise its fiscal year outlook upwards, indicating confidence in both revenue and profitability.
In another report by Baptista Research on Smartkarma, it is highlighted that NetApp ended its fiscal year 2024 on a high note, showcasing strong performance in the fourth quarter. The company exceeded revenue expectations for both the fourth quarter and the full fiscal year, driven by growth in their expanded all-flash portfolio. NetApp also achieved company records in various metrics such as annual gross margin, operating margin, earnings per share, operating cash flow, and free cash flow. This indicates the success of NetApp’s investment in Artificial Intelligence (AI) and positions the company well for future growth.
A look at Netapp Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
NetApp Inc’s long-term outlook appears positive based on the Smartkarma Smart Scores. The company receives a solid score for growth and resilience, indicating strong potential for expansion and the ability to weather economic uncertainties. Additionally, NetApp scores well on dividends, suggesting a stable payout to investors. Although the value and momentum scores are slightly lower, the overall outlook remains optimistic for NetApp Inc.
NetApp, Inc. provides storage and data management solutions to enterprises, government agencies, and universities worldwide. With a focus on specialized hardware, software, and services for storage management in open network environments, NetApp continues to position itself as a key player in the industry. Despite varying scores in different categories, the company’s overall outlook remains favorable, highlighting its potential for future growth and resilience in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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