NetApp (NTAP) came out with quarterly earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.79 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.47%. A quarter ago, it was expected that this data storage company would post earnings of $1.46 per share when it actually produced earnings of $1.56, delivering a surprise of 6.85%.Over the last four quarters, the compan ...

Financial Performance - Net revenues for Q2 FY2025 were $1.66 billion, a 6% increase year-over-year from $1.56 billion in Q2 FY2024[2] - Billings increased by 9% year-over-year to $1.59 billion, compared to $1.45 billion in Q2 FY2024[3] - GAAP net income was $299 million, up from $233 million in Q2 FY2024, with non-GAAP net income at $392 million compared to $334 million[3] - GAAP earnings per share were $1.42, an increase from $1.10 in Q2 FY2024, while non-GAAP earnings per share rose to $1.87 from $1.58[3] - Net revenues for the three months ended October 27, 2023, increased to $1.658 billion, up from $1.562 billion in the same period last year, representing a growth of 6.1%[47] - Gross profit for the three months ended October 27, 2023, was $1.177 billion, compared to $1.110 billion in the prior year, reflecting an increase of 6.0%[47] - Net income for the three months ended October 27, 2023, was $299 million, up from $233 million year-over-year, indicating a growth of 28.3%[47] - Basic net income per share increased to $1.47 for the three months ended October 27, 2023, compared to $1.12 in the same period last year, a rise of 31.3%[47] Revenue Segments - Hybrid Cloud segment revenue reached $1.49 billion, up from $1.41 billion in the same quarter last year, while Public Cloud segment revenue grew to $168 million from $154 million[3] - The hybrid cloud segment net revenues for Q2 FY25 were $1,490 million, up from $1,382 million in Q1 FY25[49] - Q2'FY25 product revenues were $768 million, an increase from $669 million in Q1'FY25 and $706 million in Q2'FY24[61] - Q2'FY25 services revenues reached $890 million, up from $872 million in Q1'FY25 and $856 million in Q2'FY24[63] Guidance and Projections - Q3 FY2025 revenue guidance is projected between $1.610 billion and $1.760 billion, with GAAP earnings per share expected to be in the range of $1.41 to $1.51[5] - Full FY2025 revenue guidance is updated to a range of $6.540 billion to $6.740 billion, with consolidated gross margins expected between 70% and 72%[5] - Non-GAAP guidance for net income per share for Q3 FY25 is projected to be between $1.85 and $1.95[72] - GAAP guidance for net income per share for FY25 is estimated to be between $5.48 and $5.68[77] - Non-GAAP gross margin guidance for FY25 is expected to be between 71% and 72%[75] - Operating margin guidance for FY25 is projected to be between 21% and 21.5% on a GAAP basis, and between 28% and 28.5% on a non-GAAP basis[75] Cash Flow and Assets - Cash provided by operating activities for the three months ended October 27, 2023, was $105 million, down from $135 million in the prior year[48] - Net cash used in investing activities was $564 million for the three months ended October 27, 2023, compared to $227 million in the same period last year[48] - Net cash used in financing activities totaled $842 million for the three months ended October 27, 2023, compared to $421 million in the prior year[48] - The company reported a cash balance of $1.487 billion at the end of the period, down from $1.941 billion at the beginning of the period[48] Balance Sheet - NetApp's total current assets decreased from $4,897 million in April 2024 to $3,939 million in October 2024, a decline of approximately 19.6%[45] - The company's cash, cash equivalents, and investments dropped from $3,252 million to $2,222 million, representing a decrease of about 31.7%[45] - Current liabilities increased from $4,106 million to $4,317 million, an increase of approximately 5.1%[45] - Long-term debt decreased from $1,992 million to $1,244 million, a reduction of about 37.6%[45] - Total liabilities decreased from $8,741 million to $8,112 million, a decline of approximately 7.2%[45] - Stockholders' equity fell from $1,146 million to $892 million, a decrease of about 22.2%[45] Operational Metrics - Operating expenses rose to $832 million for the three months ended October 27, 2023, compared to $806 million in the same period last year, marking a 3.2% increase[47] - Total cost of revenues for the three months ended October 27, 2023, was $481 million, an increase from $452 million in the same period last year, reflecting a growth of 6.4%[47] - Days sales outstanding (DSO) increased to 48 days in Q2 FY25 from 40 days in Q1 FY25[50] - Inventory turns decreased to 6 in Q2 FY25, down from 8 in Q1 FY25[50] Product and Innovation - New product innovations include the launch of all-flash NetApp™ ASA A-Series storage systems and enhancements to cyber resilience offerings with AI capabilities[6][7] - NetApp is focusing on driving growth in total product revenues through the sale of configured storage systems, with less emphasis on the pricing of individual hardware and software components[23] - The company is considering simplifying pricing for certain products, potentially eliminating separate prices for hardware and software components[24] Non-GAAP Measures - Non-GAAP measures are used to provide supplemental metrics that assist in understanding current results and future prospects, including non-GAAP net income and non-GAAP earnings per share[26] - NetApp approximates billings by adding net revenues to the change in total deferred revenue, providing a performance measure that reflects amounts under purchase orders received during a given period[28] - Non-GAAP income from operations for Q2 FY25 was $475 million, representing 28.6% of net revenues, up from 25.9% in Q1 FY25[50] - Non-GAAP net income for Q2 FY25 was $392 million, compared to $330 million in Q1 FY25[50] - Non-GAAP operating expenses for Q2'FY25 were $719 million, compared to $714 million in Q1'FY25 and $706 million in Q2'FY24[55] - Non-GAAP gross margin for Q2'FY25 was 72.0%, compared to 72.2% in Q1'FY25 and 72.0% in Q2'FY24[59]

In its upcoming report, NetApp (NTAP) is predicted by Wall Street analysts to post quarterly earnings of $1.79 per share, reflecting an increase of 13.3% compared to the same period last year. Revenues are forecasted to be $1.64 billion, representing a year-over-year increase of 5.3%.The current level reflects a downward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial proje ...

Investors in NetApp, Inc. (NTAP) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $30.00 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean ...

Core Viewpoint - NetApp (NTAP) is expected to report its second-quarter fiscal 2025 earnings on November 21, with anticipated non-GAAP earnings per share between $1.73 and $1.83, reflecting a 13.3% increase year-over-year [1][2]. Financial Expectations - The Zacks Consensus Estimate for NTAP's earnings is $1.79 per share, while net revenues are projected to be between $1.565 billion and $1.715 billion, with a consensus estimate of $1.64 billion, indicating a 5.3% increase from the previous year [2]. - NTAP has outperformed estimates in three of the last four quarters, achieving an average earnings surprise of 8.6% [3]. Market Performance - NTAP's stock has increased by 50.3% over the past year, significantly outperforming the industry growth of 12.1% [3]. Product Demand and Growth Drivers - Continued demand for NTAP's modern all-flash arrays, particularly the C-series and ASA products, is expected to positively impact earnings. The new all-flash A-series is also anticipated to contribute to growth [3][4]. - Keystone's storage-as-a-service offering has seen over 60% year-over-year revenue growth in the last reported quarter [4]. Revenue Projections - The estimated revenue for Hybrid Cloud in the second quarter is $1.4835 billion, representing a 5.4% increase from the previous year [4]. - Public Cloud revenues are projected to be $159 million, up 3.3% from the prior year, although there are concerns regarding a decline in subscription services revenue [6]. Strategic Initiatives - NTAP is benefiting from data-driven digital and cloud transformations, including business analytics, AI, data security, and application modernization, having secured over 50 AI and data lake modernization deals in the first quarter [5]. - Strengthening go-to-market activities and cloud collaborations are seen as positive factors for the company [7]. Margin and Economic Conditions - Margin performance is expected to improve due to a favorable product mix and operational discipline, despite challenges from global macroeconomic conditions and cautious IT spending [8].

The market expects NetApp (NTAP) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended October 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 21, 2024, might help the stock move higher if these key numbers are b ...

NetApp, Inc. (NTAP) recently announced an enhanced partnership with Red Hat, a premium provider of open-source solutions, to transform enterprise application development and management within virtual environments. By combining NTAP’s expertise in intelligent data infrastructure with the Red Hat OpenShift platform, the initiative empowers businesses to effortlessly manage on-premises and hybrid multi-cloud environments.Businesses today face mounting pressure to innovate quickly and develop applications that ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

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The Zacks Computer-Storage Devices industry players are likely to gain from solid momentum in cloud computing, Internet of Things (IoT), auto, connected devices, virtual reality and Artificial Intelligence (AI) in the long run. These factors propel the demand for robust data storage solutions, bolstering computer storage product requirements. These factors are favorable for prominent industry players like Super Micro Computer, Inc. (SMCI) , NetApp (NTAP) and Pure Storage (PSTG) . The democratization of high ...