Free Research Report as NetApp’s Revenue Grew 6% and Adjusted EPS Surged 35%

Stock Monitor: Pure Storage Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 28, 2017 / 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. The Company posted its financial results on November 15, 2017, for the second quarter of the fiscal year 2018. The storage and data management Company’s revenue and adjusted EPS surpassed analysts’ expectations. Register today and get access to over 1000 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 three months ended October 27, 2017, NetApp’s net revenues increased 6% to 1.42 billion from $1.34 billion in Q2 FY17. The Company’s net revenues surpassed analysts’ expectations of $1.38 billion.

During Q2 FY18, NetApp’s gross profit increased 8.8% to $902 million from $829 million in the same period of last year. For the reported quarter, the Company’s gross margin increased 150 basis points to 63.4% of revenue from 61.9% of revenue in Q2 FY17. For the reported quarter, the Company’s adjusted gross margin increased 160 basis points to 64.3% of revenue from 62.7% of revenue in Q2 FY17.

During Q2 FY18, NetApp’s operating income increased 54.2% to $219 million from $142 million in the comparable period of last year. For the reported quarter, the Company’s operating margin increased 480 basis points to 15.4% of revenue from 10.6% of revenue in Q2 FY17. For the reported quarter, the Company’s adjusted operating margin increased 390 basis points to 19.1% of revenue from 15.2% of revenue in Q2 FY17.

During Q2 FY18, NetApp’s earnings before tax (EBT) increased 58.5% to $225 million from $142 million in the corresponding period of last year. For the reported quarter, the Company’s EBT margin increased 520 basis points to 15.8% of revenue from 10.6% of revenue in Q2 FY17.

For the reported quarter, NetApp’s net income increased 60.6% to $175 million on a y-o-y basis from $109 million in Q2 FY17. During Q2 FY18, the Company’s diluted earnings per share (EPS) increased 68.4% to $0.64 on a y-o-y basis from $0.38 in the same period of last year. For the reported quarter, NetApp’s adjusted net income increased 32% to $223 million on a y-o-y basis from $169 million in Q2 FY17. During Q2 FY18, the Company’s adjusted diluted EPS increased 35% to $0.81 on a y-o-y basis from $0.60 in Q2 FY17, surpassing analysts’ expectations of $0.69.

Segment Details

Product – During Q2 FY18, the Company’s Product segment’s revenue increased 13.7% to $807 million from $710 million in the comparable period of last year. For the reported quarter, the segment’s gross profit increased 22.2% to $408 million from $334 million in Q2 FY17. For the reported quarter, the segment’s adjusted gross margin increased 360 basis points to 51.8% of revenue from 48.2% of revenue in Q2 FY17.

Software Maintenance – During Q2 FY18, the Company’s Software Maintenance segment’s revenue decreased 0.8% to $240 million from $242 million in the corresponding period of last year. For the reported quarter, the segment’s gross profit decreased 0.4% to $234 million from $235 million in Q2 FY17. For the reported quarter, the segment’s adjusted gross margin increased 40 basis points to 97.5% of revenue from 97.1% of revenue in Q2 FY17.

Hardware Maintenance and Other Services – During Q2 FY18, the Company’s Hardware Maintenance and Other Services segment’s revenue decreased 3.4% to $375 million from $388 million in the same period of last year. For the reported quarter, the segment’s gross profit was on par with the $260 million recorded in Q2 FY17. For the reported quarter, the segment’s adjusted gross margin increased 210 basis points to 69.9% of revenue from 67.8% of revenue in Q2 FY17.

Balance Sheet

As on October 27, 2017, NetApp’s cash, cash equivalents, and investments increased 21.2% to $5.97 billion from $4.92 billion as on April 28, 2017. For the reported quarter, the Company’s long-term debt increased 107% to $1.54 billion from $744 million in Q4 FY17.

For the reported quarter, the Company’s accounts receivable decreased 20.1% to $584 million from $731 million in Q4 FY17. For the reported quarter, the Company’s accounts payable increased 9.2% to $379 million from $347 million in Q4 FY17.

During Q2 FY18, the Company’s net cash provided by operating activities increased 98.7% to $314 million from $158 million in the comparable period of last year. During Q2 FY18, the Company’s free cash flow increased 179.4% to $285 million from $102 million in Q2 FY17.

Outlook

For Q3 FY18, the Company expects revenue to be in the range of $1.43 billion – $1.58 billion. The Company estimates diluted EPS to be in the band of $1.18 – $1.26, and adjusted diluted EPS to be in the range of $0.86 – $0.94 for Q3 FY18.

Stock Performance Snapshot

December 27, 2017 – At Wednesday’s closing bell, NetApp’s stock slightly climbed 0.52%, ending the trading session at $56.15.

Volume traded for the day: 971.35 thousand shares.

Stock performance in the last three-month – up 27.12%; previous six-month period – up 38.95%; past twelve-month period – up 53.37%; and year-to-date – up 59.20%

After yesterday’s close, NetApp’s market cap was at $15.10 billion.

Price to Earnings (P/E) ratio was at 24.11.

The stock has a dividend yield of 1.42%.

The stock is part of the Technology sector, categorized under the Data Storage Devices industry. This sector was up 0.1% at the end of the session.

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