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What to Expect Ahead of NetApp's (NTAP) Q3 Earnings Release?
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NetApp (NTAP - Free Report) is slated to release third-quarter fiscal 2022 earnings on Feb 23.
The company projects non-GAAP earnings for the fiscal third quarter to be between $1.21 and $1.31 per share. The Zacks Consensus Estimate is pegged at $1.28 per share, suggesting an improvement of 16.4% from the year-ago quarter’s reported figure.
The company expects net revenues in the range of $1.525-$1.675 billion. The Zacks Consensus Estimate is pegged at $1.61 billion, suggesting growth of 9.7% year over year.
The company beat estimates in all of the last four quarters. It has a trailing four-quarter earnings surprise of 9.8%, on average.
Shares of NetApp have surged 34.2% in the past year compared with the industry's return of 1.5%.
Rapid cloud migration and digital transformation endeavours by enterprises across the globe is fueling demand for cloud-based storage. The continuation of work from home and hybrid work innovation are other driving factors.
Apart from these factors, NetApp’s strengthening go-to-market activities, various cloud collaborations and continued product innovation are likely to have favored the top line in the fiscal third quarter.
Synergies from the buyouts of CloudCheckr, Data Mechanics, Cloud Jumper and Talon are likely to have acted as tailwinds. In November 2021, NetApp concluded the buyout of CloudCheckr for an undisclosed sum. With the CloudCheckr buyout, the company is looking to bolster the Spot by NetApp FinOps solutions.
Coming to the segments, strength in the company’s all-flash business is expected to have contributed to the Hybrid Cloud segment’s revenues in the to-be-reported quarter. Software product revenues are likely to have gained from the favorable mix shift to the all-flash portfolio.
For the fiscal third quarter, the Zacks Consensus Estimate for the Hybrid Cloud segment’s revenues is pegged at $1.47 billion.
Increasing clout of Spot by NetApp portfolio — which facilitates enterprises to make multi-cloud management easier and lower expenses — might have aided the Public Cloud services business. The company recently rolled out Spot Security, which enhances the security of cloud infrastructure by delivering continuous AI-powered security services.
Higher uptake of Cloud Volumes and Cloud Insights services are also likely to have driven the company’s Public Cloud services business. In the last reported quarter, the company expanded the availability of Cloud Volumes Service in the Google Cloud.
The impressive uptake of Azure NetApp Files is anticipated to have bolstered the Public Cloud Services business’ annualized recurring revenues or ARR. In the last reported quarter, Public Cloud Services recorded annualized recurring revenues (ARR) of $388 million, up 80% year over year and 15% quarter over quarter.
For the fiscal third quarter, the Zacks Consensus Estimate for the Public Service segment’s revenues is at $106 million.
Incremental gains from an uptick in the company’s NetApp Astra solution and NetApp ONTAP data management software might have had favored the top line. In the fiscal second quarter, NetApp announced that Amazon FSx for NetApp ONTAP service is available everywhere globally. Amazon FSx for NetApp ONTAP is Amazon Web Services’ managed service and is based on NetApp ONTAP software.
Global supply chain constraints and increasing expenditures amid competition from fellow storage peers might have limited margin expansion in the to-be-reported quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
NetApp has an Earnings ESP of +0.4% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Zscaler is set to release second-quarter fiscal 2022 results on Feb 24. The Zacks Consensus Estimate for earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure. Shares of Zscaler have increased 23.6% in the past year.
DICK'S Sporting Goods (DKS - Free Report) has an Earnings ESP of +4.86% and a Zacks Rank of 2 at present.
DICK'S Sporting Goods is scheduled to release fourth-quarter fiscal 2021 results on Mar 8. The Zacks Consensus Estimate for earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year quarter’s levels. Shares of DKS have increased 50% in the past year.
Nielsen Holdings has an Earnings ESP of +2.78% and a Zacks Rank of 2.
Nielsen is scheduled to release fourth-quarter 2021 results on Feb 28. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, declining 32.1% from the year-ago quarter’s levels. Shares of NLSN have plunged 25.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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What to Expect Ahead of NetApp's (NTAP) Q3 Earnings Release?
NetApp (NTAP - Free Report) is slated to release third-quarter fiscal 2022 earnings on Feb 23.
The company projects non-GAAP earnings for the fiscal third quarter to be between $1.21 and $1.31 per share. The Zacks Consensus Estimate is pegged at $1.28 per share, suggesting an improvement of 16.4% from the year-ago quarter’s reported figure.
The company expects net revenues in the range of $1.525-$1.675 billion. The Zacks Consensus Estimate is pegged at $1.61 billion, suggesting growth of 9.7% year over year.
The company beat estimates in all of the last four quarters. It has a trailing four-quarter earnings surprise of 9.8%, on average.
Shares of NetApp have surged 34.2% in the past year compared with the industry's return of 1.5%.
NetApp, Inc. Price and EPS Surprise
NetApp, Inc. price-eps-surprise | NetApp, Inc. Quote
Factors to Note
Rapid cloud migration and digital transformation endeavours by enterprises across the globe is fueling demand for cloud-based storage. The continuation of work from home and hybrid work innovation are other driving factors.
Apart from these factors, NetApp’s strengthening go-to-market activities, various cloud collaborations and continued product innovation are likely to have favored the top line in the fiscal third quarter.
Synergies from the buyouts of CloudCheckr, Data Mechanics, Cloud Jumper and Talon are likely to have acted as tailwinds. In November 2021, NetApp concluded the buyout of CloudCheckr for an undisclosed sum. With the CloudCheckr buyout, the company is looking to bolster the Spot by NetApp FinOps solutions.
Coming to the segments, strength in the company’s all-flash business is expected to have contributed to the Hybrid Cloud segment’s revenues in the to-be-reported quarter. Software product revenues are likely to have gained from the favorable mix shift to the all-flash portfolio.
For the fiscal third quarter, the Zacks Consensus Estimate for the Hybrid Cloud segment’s revenues is pegged at $1.47 billion.
Increasing clout of Spot by NetApp portfolio — which facilitates enterprises to make multi-cloud management easier and lower expenses — might have aided the Public Cloud services business. The company recently rolled out Spot Security, which enhances the security of cloud infrastructure by delivering continuous AI-powered security services.
Higher uptake of Cloud Volumes and Cloud Insights services are also likely to have driven the company’s Public Cloud services business. In the last reported quarter, the company expanded the availability of Cloud Volumes Service in the Google Cloud.
The impressive uptake of Azure NetApp Files is anticipated to have bolstered the Public Cloud Services business’ annualized recurring revenues or ARR. In the last reported quarter, Public Cloud Services recorded annualized recurring revenues (ARR) of $388 million, up 80% year over year and 15% quarter over quarter.
For the fiscal third quarter, the Zacks Consensus Estimate for the Public Service segment’s revenues is at $106 million.
Incremental gains from an uptick in the company’s NetApp Astra solution and NetApp ONTAP data management software might have had favored the top line. In the fiscal second quarter, NetApp announced that Amazon FSx for NetApp ONTAP service is available everywhere globally. Amazon FSx for NetApp ONTAP is Amazon Web Services’ managed service and is based on NetApp ONTAP software.
Global supply chain constraints and increasing expenditures amid competition from fellow storage peers might have limited margin expansion in the to-be-reported quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
NetApp has an Earnings ESP of +0.4% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Zscaler (ZS - Free Report) has an Earnings ESP of +3.6% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zscaler is set to release second-quarter fiscal 2022 results on Feb 24. The Zacks Consensus Estimate for earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure. Shares of Zscaler have increased 23.6% in the past year.
DICK'S Sporting Goods (DKS - Free Report) has an Earnings ESP of +4.86% and a Zacks Rank of 2 at present.
DICK'S Sporting Goods is scheduled to release fourth-quarter fiscal 2021 results on Mar 8. The Zacks Consensus Estimate for earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year quarter’s levels. Shares of DKS have increased 50% in the past year.
Nielsen Holdings has an Earnings ESP of +2.78% and a Zacks Rank of 2.
Nielsen is scheduled to release fourth-quarter 2021 results on Feb 28. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, declining 32.1% from the year-ago quarter’s levels. Shares of NLSN have plunged 25.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.