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What to Expect Ahead of NetApp's (NTAP) Q1 Earnings Release?
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NetApp (NTAP - Free Report) is scheduled to release first-quarter fiscal 2022 earnings on Aug 25.
The company anticipates non-GAAP earnings for first-quarter fiscal 2021 between 89 cents and 97 cents per share. The Zacks Consensus Estimate for earnings is at 95 cents per share, suggesting an improvement of 30.1% from the year-ago quarter’s reported figure.
The company expects net revenues to be in the range of $1.37-$1.47 billion. The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at $1.44 billion, suggesting growth of 10.2% year over year.
The company beat estimates in all the trailing four quarters. It has a trailing four-quarter earnings surprise of 35.43%, on average.
Shares of NetApp have rallied 92.2% in the past year compared with the industry's return of 67.2%.
Accelerated cloud and digital transformation endeavors and continuation of remote work setup owing to the pandemic has increased demand for cloud-based storage. This is likely to have driven the adoption of NetApp’s hybrid multi-cloud offerings, cloud data services and private cloud offerings as well as positively impacted top-line performance.
Strength in recurring support contracts as well as recovery in enterprise demand also augurs well.
Cloud Volumes and Cloud Insights services are likely to have driven the company’s public cloud services business. Growing clout of the company’s new solution for containerized applications — Spot by NetApp portfolio — which facilitates enterprises to make multi-cloud management easier and lower expenses, might have also aided public cloud services business.
Higher adoption of Microsoft’s (MSFT - Free Report) Azure NetApp Files is anticipated to have bolstered Public Cloud Services business’ annualized recurring revenues (ARR) in fiscal first quarter. Public Cloud Services recorded ARR of $301 million, up 171% year over year and 27% quarter over quarter.
Strength in the company’s all-flash business is expected to have positively impacted revenue performance in the to-be-reported quarter. Software product revenues are likely to have gained from favorable mix shift to all-flash portfolio.
For fiscal first quarter, the Zacks Consensus Estimate for Product revenues is pegged at $704 million, indicating year-over-year increase of 12.3%.
The Zacks Consensus Estimate for Hardware Maintenance & Other Services revenues is pegged at $378 million, suggesting year-over-year improvement of 0.8%.
The consensus mark for Software Maintenance revenues is pegged at $353 million, indicating year-over-year growth of 17.3%.
Steady traction witnessed in the company’s HCI (or hyper converged infrastructure) and cloud collaborations with the likes of Microsoft’s Azure platform and Alphabet’s (GOOGL - Free Report) Google Cloud might have contributed to the to-be-reported quarter’s performance.
Synergies from the buyouts of Cloud Jumper and Talon are expected to have driven the company’s performance.
Incremental gains from uptick in the company’s NetApp ONTAP data management software that helps organizations in accelerating digital transformation, optimizing costs and improving security is likely to have favored the top line. The company also rolled out ONTAP 9.9 in fiscal fourth-quarter 2021.
In fiscal fourth quarter, the company’s NetApp Astra solution was made generally available which strengthens its hybrid cloud portfolio. NetApp Astra provides application-aware data management designed for Kubernetes workloads.
Increasing expenditures amid stiff competition from fellow storage peers including Pure Storage (PSTG - Free Report) might have limited margin expansion in the to-be-reported quarter.
Image: Bigstock
What to Expect Ahead of NetApp's (NTAP) Q1 Earnings Release?
NetApp (NTAP - Free Report) is scheduled to release first-quarter fiscal 2022 earnings on Aug 25.
The company anticipates non-GAAP earnings for first-quarter fiscal 2021 between 89 cents and 97 cents per share. The Zacks Consensus Estimate for earnings is at 95 cents per share, suggesting an improvement of 30.1% from the year-ago quarter’s reported figure.
The company expects net revenues to be in the range of $1.37-$1.47 billion. The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at $1.44 billion, suggesting growth of 10.2% year over year.
The company beat estimates in all the trailing four quarters. It has a trailing four-quarter earnings surprise of 35.43%, on average.
Shares of NetApp have rallied 92.2% in the past year compared with the industry's return of 67.2%.
NetApp, Inc. Price and EPS Surprise
NetApp, Inc. price-eps-surprise | NetApp, Inc. Quote
Factors to Note
Accelerated cloud and digital transformation endeavors and continuation of remote work setup owing to the pandemic has increased demand for cloud-based storage. This is likely to have driven the adoption of NetApp’s hybrid multi-cloud offerings, cloud data services and private cloud offerings as well as positively impacted top-line performance.
Strength in recurring support contracts as well as recovery in enterprise demand also augurs well.
Cloud Volumes and Cloud Insights services are likely to have driven the company’s public cloud services business. Growing clout of the company’s new solution for containerized applications — Spot by NetApp portfolio — which facilitates enterprises to make multi-cloud management easier and lower expenses, might have also aided public cloud services business.
Higher adoption of Microsoft’s (MSFT - Free Report) Azure NetApp Files is anticipated to have bolstered Public Cloud Services business’ annualized recurring revenues (ARR) in fiscal first quarter. Public Cloud Services recorded ARR of $301 million, up 171% year over year and 27% quarter over quarter.
Strength in the company’s all-flash business is expected to have positively impacted revenue performance in the to-be-reported quarter. Software product revenues are likely to have gained from favorable mix shift to all-flash portfolio.
For fiscal first quarter, the Zacks Consensus Estimate for Product revenues is pegged at $704 million, indicating year-over-year increase of 12.3%.
The Zacks Consensus Estimate for Hardware Maintenance & Other Services revenues is pegged at $378 million, suggesting year-over-year improvement of 0.8%.
The consensus mark for Software Maintenance revenues is pegged at $353 million, indicating year-over-year growth of 17.3%.
Steady traction witnessed in the company’s HCI (or hyper converged infrastructure) and cloud collaborations with the likes of Microsoft’s Azure platform and Alphabet’s (GOOGL - Free Report) Google Cloud might have contributed to the to-be-reported quarter’s performance.
Synergies from the buyouts of Cloud Jumper and Talon are expected to have driven the company’s performance.
Incremental gains from uptick in the company’s NetApp ONTAP data management software that helps organizations in accelerating digital transformation, optimizing costs and improving security is likely to have favored the top line. The company also rolled out ONTAP 9.9 in fiscal fourth-quarter 2021.
In fiscal fourth quarter, the company’s NetApp Astra solution was made generally available which strengthens its hybrid cloud portfolio. NetApp Astra provides application-aware data management designed for Kubernetes workloads.
Increasing expenditures amid stiff competition from fellow storage peers including Pure Storage (PSTG - Free Report) might have limited margin expansion in the to-be-reported quarter.
Currently, NetApp carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.