Revenue Performance - Net revenues for Q3 FY2025 were $1.64 billion, a 2% increase from $1.61 billion in Q3 FY2024[3] - Hybrid Cloud segment revenue reached $1.47 billion, slightly up from $1.46 billion in the same quarter last year[3] - All-flash array annualized net revenue run rate was $3.8 billion, reflecting a 10% year-over-year increase[4] - First-party and marketplace cloud storage services revenue grew over 40% year-over-year[4] - Total net revenues for Q3 FY25 were $1,641 million, slightly down from $1,658 million in Q2 FY25 and up from $1,606 million in Q3 FY24[52] - The public cloud segment net revenues increased to $174 million in Q3 FY25, up from $168 million in Q2 FY25 and $151 million in Q3 FY24[52] Income and Profitability - GAAP net income for Q3 FY2025 was $299 million, down from $313 million in Q3 FY2024[10] - Non-GAAP net income for Q3 FY2025 was $397 million, compared to $410 million in Q3 FY2024[10] - Net income for Q3 FY25 was $299 million, a decrease of 4.5% compared to $313 million in Q3 FY24[59] - Non-GAAP income from operations increased to $492 million in Q3 FY25, representing 30.0% of net revenues, compared to 28.6% in Q2 FY25[53] - Non-GAAP income from operations for Q3'FY25 was $492 million, compared to $485 million in Q3'FY24, reflecting a 1.4% increase[63] - The company reported a non-GAAP operating margin of 30.0% for Q3'FY25, compared to 30.2% in Q3'FY24[71] Cash Flow and Shareholder Returns - The company returned $306 million to stockholders through share repurchases and cash dividends[4] - Free cash flow for Q3 FY25 was $338 million, which is 20.6% of net revenues, significantly higher than 3.6% in Q2 FY25[57] - Free cash flow for Q3'FY25 was $338 million, significantly lower than $448 million in Q3'FY24[74] - The company repurchased $200 million of common stock in Q3 FY25, compared to $100 million in Q2 FY25[57] Guidance and Projections - For Q4 FY2025, net revenues are expected to be in the range of $1.65 billion to $1.80 billion[6] - Full FY2025 net revenues are projected to be between $6.49 billion and $6.64 billion[7] - The company expects Q4'FY25 GAAP net income per share guidance to be between $1.45 and $1.55, with non-GAAP guidance between $1.84 and $1.94[78] - Fiscal 2025 GAAP guidance for net income per share is projected to be between $5.49 and $5.59[82] - Non-GAAP guidance for net income per share is estimated to be between $7.17 and $7.27[82] Assets and Liabilities - Total assets decreased from $9,887 million as of April 26, 2024, to $8,989 million as of January 24, 2025, a reduction of approximately 9.1%[46] - The total liabilities decreased from $8,741 million as of April 26, 2024, to $7,994 million as of January 24, 2025, a decline of approximately 8.5%[46] - NetApp's cash, cash equivalents, and investments decreased from $3,252 million as of April 26, 2024, to $2,261 million as of January 24, 2025, a decline of approximately 30.5%[46] - The company’s accounts receivable decreased from $1,007 million as of April 26, 2024, to $898 million as of January 24, 2025, a reduction of approximately 10.9%[46] Operating Expenses and Margins - The company’s total operating expenses for the three months ended January 24, 2025, were $783 million, compared to $785 million for the same period in 2024, a marginal decrease of 0.3%[49] - Operating expenses for Q3'FY25 totaled $783 million, a decrease from $785 million in Q3'FY24[61] - The gross margin for the product segment decreased to 56.7% in Q3 FY25 from 60.3% in Q2 FY25[52] - GAAP gross margin for Q3'FY25 was 69.8%, down from 71.7% in Q3'FY24, while non-GAAP gross margin was 70.7%[65] Tax and Other Metrics - The effective tax rate for Q3'FY25 was 19.2%, compared to 18.1% in Q3'FY24[73] - Days sales outstanding (DSO) increased to 50 days in Q3 FY25 from 48 days in Q2 FY25[55] - Deferred revenue and financed unearned services revenue stood at $4,122 million, slightly up from $4,100 million in Q2 FY25[55]

Core Viewpoint - NetApp, Inc. is set to release its third-quarter financial results, with analysts projecting a slight decline in earnings per share but an increase in quarterly revenue [1]. Financial Performance - Analysts expect NetApp to report quarterly earnings of $1.91 per share, down from $1.94 per share in the same period last year [1]. - The company projects quarterly revenue of $1.7 billion, compared to $1.61 billion a year earlier [1]. Analyst Rating and Price Target - Bank of America Securities analyst Wamsi Mohan upgraded NetApp's rating from Underperform to Neutral and raised the price target from $121 to $128 [2]. Dividend Information - NetApp currently offers an annual dividend yield of 1.70%, translating to a quarterly dividend of 52 cents per share, or $2.08 annually [3]. - To achieve a monthly dividend income of $500, an investor would need to own approximately 2,885 shares, equating to a total investment of about $359,154 [5]. - For a more conservative monthly income goal of $100, an investor would need 577 shares, or an investment of approximately $71,831 [5]. Stock Price Movement - Shares of NetApp increased by 1.5%, closing at $124.49 on Wednesday [7].

Core Viewpoint - Analysts forecast that NetApp (NTAP) will report quarterly earnings of $1.90 per share, reflecting a year-over-year decline of 2.1%, while revenues are expected to reach $1.69 billion, indicating a 5.2% increase compared to the previous year [1]. Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts predict 'Net revenues- Services' will reach $899.89 million, a 4.8% increase from the prior-year quarter [5]. - The consensus for 'Net revenues- Product' is $788.90 million, reflecting a 9% increase from the year-ago quarter [5]. - 'Net revenues- Public Cloud' is estimated at $172.98 million, showing a 14.6% increase from the previous year [5]. - 'Net revenues- Hybrid Cloud' is forecasted to be $1.52 billion, indicating a 4.3% increase from the prior year [6]. Margin Estimates - Analysts expect 'Gross margin - Product - Non-GAAP' to be 59.5%, down from 62.5% in the same quarter last year [6]. - The projected 'Gross margin - Services - Non-GAAP' is 82.2%, up from 81.5% in the previous year [7]. Geographic Mix - The estimated 'Geographic Mix - Asia Pacific' is 15.2%, compared to 15% in the same quarter last year [8]. - 'Geographic Mix - Americas' is expected to be 51.1%, up from 50% a year ago [8]. - The average prediction for 'Geographic Mix - EMEA' is 33.7%, down from 35% in the previous year [8]. - 'Geographic Mix - Americas - Americas Commercial' is projected to be 40.9%, slightly down from 41% a year ago [9]. Stock Performance - NetApp shares have shown a return of -1.2% over the past month, compared to a -0.5% change in the Zacks S&P 500 composite [9].

Core Viewpoint - NetApp (NTAP) is positioned to potentially continue its earnings-beat streak in the upcoming report, supported by a history of surpassing earnings estimates and a positive earnings outlook [1][3]. Earnings Performance - In the last reported quarter, NetApp achieved earnings of $1.87 per share, exceeding the Zacks Consensus Estimate of $1.79 per share, resulting in a surprise of 4.47% [2]. - For the previous quarter, NetApp's earnings were $1.56 per share against an expected $1.46 per share, delivering a surprise of 6.85% [2]. Earnings Estimates and Predictions - Estimates for NetApp have been trending higher, influenced by its history of earnings surprises, and the stock currently has a positive Zacks Earnings ESP of +1.40%, indicating bullish sentiment among analysts [3][6]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [4][6]. Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate than earlier predictions [5]. - A negative Earnings ESP does not necessarily indicate an earnings miss but can reduce the predictive power of the metric [7]. Importance of Earnings ESP - It is crucial for investors to check a company's Earnings ESP before quarterly releases to enhance the chances of successful predictions regarding earnings performance [8].

Company Performance - NetApp (NTAP) closed at $124.58, with a slight increase of +0.04%, outperforming the S&P 500's loss of 0.43% on the same day [1] - Over the past month, NetApp's stock has decreased by 1.21%, underperforming the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6% [1] Upcoming Earnings - NetApp is set to disclose its earnings on February 27, 2025, with projected earnings of $1.90 per share, reflecting a year-over-year decline of 2.06% [2] - The consensus estimate for revenue is $1.69 billion, indicating a growth of 5.16% compared to the same quarter last year [2] Full-Year Estimates - Zacks Consensus Estimates forecast NetApp's full-year earnings at $7.31 per share and revenue at $6.65 billion, representing year-over-year increases of +13.16% and +6.06%, respectively [3] - Recent changes in analyst estimates suggest optimism regarding NetApp's business and profitability [3] Valuation Metrics - NetApp has a Forward P/E ratio of 17.02, which is in line with the industry average [6] - The company has a PEG ratio of 2.38, matching the industry average as of the latest close [6] Industry Context - The Computer-Storage Devices industry, part of the broader Computer and Technology sector, holds a Zacks Industry Rank of 151, placing it in the bottom 40% of over 250 industries [7] - Research indicates that industries in the top 50% outperform those in the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - NetApp (NTAP) is showing potential as a strong investment opportunity due to its recent technical movements and positive earnings revisions [1][2][3] Technical Analysis - NTAP has recently crossed above the 200-day moving average, indicating a long-term bullish trend [1] - The stock has rallied 5.6% over the past four weeks, suggesting upward momentum [2] - The 200-day simple moving average serves as a significant support level for NTAP [2] Earnings Estimates - There have been 2 upward revisions in earnings estimates for the current fiscal year, with no downward revisions [3] - The consensus earnings estimate for NTAP has also increased, reinforcing the positive outlook [3] Investment Sentiment - NTAP currently holds a Zacks Rank of 2 (Buy), indicating favorable market sentiment [2] - The combination of technical indicators and positive earnings revisions suggests that NTAP may be poised for further gains in the near future [3]

Company Performance and Market Position - NetApp's stock has increased by 46% since the beginning of 2024, outperforming the S&P 500 index which is up 28% [1] - The company's Hybrid Cloud business is showing signs of recovery with a 6% year-over-year revenue growth to $1.5 billion in the first half of FY'25 [2] - NetApp's full-year revenue guidance has been lifted to $6.54-$6.74 billion, with expected growth of approximately 6% and full-year EPS anticipated to be in the range of $7.20-$7.40, a 13% year-over-year growth [5] Industry Trends and Opportunities - NetApp is poised to benefit from the demand for artificial intelligence, particularly in large-language model environments, which could drive higher sales of its hardware and tools [3] - The company could see increased demand for its flash-based products over lower-speed hard disk-based products, as flash-based memory works better with high-performance GPUs from companies like Nvidia and AMD [3] - NetApp expects its total addressable market to expand by more than $100 billion by 2027, with significant contributions from the all-flash data market ($40 billion), file and block storage ($27 billion), public cloud ($27 billion), and artificial intelligence storage space ($14 billion) [6] Financial Metrics and Valuation - NetApp's stock is trading at a little over 18x consensus FY'25 earnings, with a price estimate of about $130, almost in line with the market price as of January 22 [5] - The company's margins are likely to trend higher due to a higher mix of all-flash array sales and increased cloud and services revenue [6] Historical Performance and Volatility - NetApp's stock has shown considerable volatility over the last 4-year period, with annual returns of 42% in 2021, -33% in 2022, 51% in 2023, and 34% in 2024 [4] - The Trefis High Quality Portfolio, consisting of 30 stocks, has been less volatile and has outperformed the S&P 500 over the same period [4]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

NetApp’s (NTAP) shares have proven resilient, with a 37.8% gain in the past year, outpacing the industry’s growth of 10.7%. NetApp provides enterprise storage as well as data management software and hardware products and services.It has also outperformed the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 27.8% and 24.8%, respectively. Closing at $122.09 in the last trading session, NTAP stock is currently trading 9.9% below its 52-week high of $135.45, attained on Nov. 22, 2024.P ...

In the latest market close, NetApp (NTAP) reached $122.09, with a +1.76% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 1.51%.The data storage company's stock has climbed by 2.92% in the past month, exceeding the Computer and Technology sector's loss of 4.13% and the S&P 500's loss of 2.14%.The investment community will be paying close attention to the earnings performance ...