Free Post Earnings Research Report: NetApp’s Revenue Jumped 8%; Adjusted EPS Advanced 21%

Stock Monitor: Pure Storage Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 22, 2018 / Active-Investors.com has just released a free earnings report on NetApp, Inc. (NASDAQ: NTAP). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=NTAP. NetApp reported its third quarter fiscal 2018 operating and financial results on February 14, 2018. The data storage Company exceeded revenue and earnings expectations and provided guidance for the upcoming quarter. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Pure Storage, Inc. (NYSE: PSTG), which also belongs to the Technology sector as the Company NetApp. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, NetApp most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=NTAP

Earnings Highlights and Summary

For the third quarter fiscal year 2018, ended January 26, 2018, NetApp’s revenue was $1.52 billion, increasing 8% compared to revenue of $1.40 billion in Q3 FY17, driven by strong product revenue and a 2-point currency tailwind. The Company’s reported numbers beat analysts’ estimates of $1.49 billion.

During Q3 FY18, NetApp’s operating expenses were $644 million, increasing 11% on a y-o-y basis, almost entirely due to higher variable compensation expense associated with the Company’s outperformance and to a lesser extent, merit, and currency. Excluding these items, operating expenses would have been flat on a y-o-y basis. As a percentage of net revenue, NetApp’s operating expense of 42% was approximately flat compared to the year-ago same period. The Company’s reported quarter operating margin of 20.4% was also flat on a y-o-y basis.

NetApp reported GAAP net loss of $506 million, or $1.89 per share, for Q3 FY18 compared to GAAP net income of $146 million, or $0.52 per share, in Q3 FY17.

On a non-GAAP basis, NetApp posted net income of $273 million, or $0.99 per share, compared to non-GAAP net income of $231 million, or $0.82 per share, in Q3 FY17. The Company’s reported quarter earnings benefited from a lower tax rate and higher other income from onetime currency gains and balance sheet items. NetApp’s earnings topped Wall Street’s estimates of $0.90 per share.

NetApp’s Segment Results

During Q3 FY18, Product segment’s revenue was $920 million, rising 17% compared to revenue of $784 million in Q3 FY17, reflecting the strength of the Company’s strategic products as well as a 3.5 point currency benefit. This was the fifth consecutive quarter of y-o-y product revenue growth.

For Q3 FY18, NetApp’s combination of software maintenance and hardware maintenance and other services revenue of $603 million declined 3% on a y-o-y basis, primarily due to lower revenue from renewals.

During Q3 FY18, In Q3, the all-flash array business, inclusive of All-Flash FAS, EF, and SolidFire products and services, grew 50% on a y-o-y basis to an annualized net revenue run rate of $2 billion.

Cash Matters

As of January 26, 2018, NetApp’s cash, cash equivalents, and investments were $5.6 billion. In the reported quarter, the Company generated cash flow from operations of $420 million compared to $235 million in the prior year’s same quarter. NetApp generated strong free cash flow of $388 million in Q3 FY18, which represented 25% of net revenues and reflected an increase of 104% on a y-o-y basis.

In Q3 FY18, NetApp returned $203 million to shareholders through share repurchases and a cash dividend. The Company announced next cash dividend of $0.20 per share to be paid on April 25, 2018, to shareholders of record as of the close of business on April 06, 2018

Financial Outlook

For the fourth quarter of the fiscal year 2018, NetApp is forecasting net revenues to be in the range of $1.525 billion to $1.675 billion. The Company is expecting GAAP earnings in the band of $0.75 to $0.83 per share and non-GAAP earnings between $0.95 and $1.03 per share.

Stock Performance Snapshot

March 21, 2018 – At Wednesday’s closing bell, NetApp’s stock climbed 1.26%, ending the trading session at $64.11.

Volume traded for the day: 2.13 million shares.

Stock performance in the last month – up 10.38%; previous three-month period – up 11.05%; past twelve-month period – up 56.71%; and year-to-date – up 15.89%

After yesterday’s close, NetApp’s market cap was at $17.18 billion.

Price to Earnings (P/E) ratio was at 20.58.

The stock has a dividend yield of 1.25%.

The stock is part of the Technology sector, categorized under the Data Storage Devices industry.

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