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NetApp Stock: Will The 60% Post-Earnings Rally Trend Hold Post Q1?
Forbes· 2025-08-26 11:10
Group 1 - NetApp is expected to announce its fiscal first-quarter 2026 earnings on August 27, 2025, with anticipated earnings of $1.54 per share and revenue of $1.54 billion, reflecting a slight year-over-year decline in earnings and flat sales compared to the previous year [2] - For fiscal 2026, NetApp projects revenue between $6.63 billion and $6.88 billion, indicating a growth of 3% to 4%, with gross margins of 71% to 72% and non-GAAP EPS of $7.60 to $7.90 [3] - The company aims to return up to 100% of free cash flow through dividends and buybacks, highlighting its focus on profitability and shareholder returns [3] Group 2 - Over the past twelve months, NetApp generated $6.6 billion in revenue, with an operating profit of $1.4 billion and a net income of $1.2 billion, showcasing its operational strength despite subdued top-line growth [3] - Historical data indicates that NetApp shares have increased following earnings reports 60% of the time, with a median one-day gain of 4.4% and a maximum observed increase of 18% [2][4] - The correlation between one-day post-earnings returns and subsequent five-day returns can provide insights for traders, with a strategy to position long if the one-day return is positive [5]