NetApp (NTAP) Set to Report Q1 Earnings: What's in Store?

Core Viewpoint - NetApp (NTAP) is expected to report strong earnings for the first quarter of fiscal 2025, with non-GAAP EPS projected between $1.40 and $1.50, reflecting a 27% increase year-over-year, and net revenues anticipated to be between $1.455 billion and $1.605 billion, indicating a 7.1% increase from the previous year [1][2]. Group 1: Earnings Expectations - Non-GAAP EPS is projected to be between $1.40 and $1.50, with a consensus estimate of $1.46, marking a 27% increase from the previous year [1]. - Net revenues are expected to range from $1.455 billion to $1.605 billion, with a consensus estimate of $1.53 billion, representing a 7.1% increase year-over-year [1]. - The company has beaten estimates in three of the last four quarters, with an average earnings surprise of 8.8% [1]. Group 2: Revenue Drivers - Continued momentum in all-flash products and hyperscaler services is expected to drive top-line performance [2]. - Increasing adoption of new products like the AFF A-Series and Keystone, along with ransomware protection solutions, is likely to contribute positively [2]. - The company benefits from digital and cloud transformations, including business analytics and AI [2]. Group 3: Segment Performance - Hybrid Cloud revenues are estimated at $1,368 million, reflecting a 7% increase from the previous year [3]. - Public Cloud revenues are projected to grow to $161.1 million, a 4.6% increase year-over-year [3]. Group 4: Challenges - Global macroeconomic volatility, cautious IT spending, and cloud cost optimization efforts by clients are potential concerns [3]. - Unfavorable foreign exchange movements, high interest rates, and rising NAND prices from suppliers may negatively impact earnings [4]. Group 5: Earnings Prediction Model - Current model does not predict an earnings beat for NTAP, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [5].