NetApp(US:NTAP) ZACKS·2025-05-23 14:22Core Viewpoint - NetApp (NTAP) is expected to report quarterly earnings of $1.89 per share, reflecting a 5% increase year-over-year, with revenues projected at $1.73 billion, a 3.4% increase from the previous year [1]. Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2]. Key Metrics Overview - Analysts project 'Net revenues- Services' to reach $893.66 million, indicating a 3.7% increase year-over-year [4]. - 'Net revenues- Product' is expected to be $831.32 million, reflecting a 3.1% increase from the previous year [4]. - 'Net revenues- Public Cloud' is forecasted at $169.80 million, showing an 11.7% increase year-over-year [4]. - 'Net revenues- Hybrid Cloud' is anticipated to reach $1.56 billion, a 2.6% increase from the previous year [5]. - 'Geographic Revenue- United States, Canada and Latin America' is projected at $877.61 million, a 3.5% increase year-over-year [5]. - 'Geographic Revenue- Asia Pacific' is expected to be $262.60 million, reflecting a 3.4% increase from the previous year [5]. - 'Geographic Revenue- Europe, Middle East and Africa' is estimated at $583.11 million, indicating a 3% increase year-over-year [6]. Margin and Revenue Changes - 'Gross margin - Product - Non-GAAP' is expected to be 56.2%, down from 61.3% in the same quarter last year [6]. - 'Gross margin - Services - Non-GAAP' is projected at 82.0%, compared to 81% in the previous year [7]. - Total Revenue is expected to change by 3.3%, down from 6% in the same quarter last year [7]. - 'Geographic Mix - Asia Pacific' is estimated at 15.2%, slightly up from 15% year-over-year [7]. - 'Geographic Mix - Americas' is projected at 50.9%, down from 51% in the same quarter last year [8]. Stock Performance - NetApp shares have increased by 13.2% over the past month, outperforming the Zacks S&P 500 composite, which rose by 10.7% [8].