What Analyst Projections for Key Metrics Reveal About NetApp (NTAP) Q3 Earnings

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$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$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$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].