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NetApp (NTAP) Reports Q4 Earnings: What Key Metrics Have to Say
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NetApp (NTAP - Free Report) reported $1.58 billion in revenue for the quarter ended April 2023, representing a year-over-year decline of 5.9%. EPS of $1.54 for the same period compares to $1.42 a year ago.
The reported revenue represents a surprise of +2.36% over the Zacks Consensus Estimate of $1.54 billion. With the consensus EPS estimate being $1.35, the EPS surprise was +14.07%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how NetApp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Gross margin - Product - Non GAAP: 55.1% versus 47.72% estimated by six analysts on average.
Services gross margin - Non-GAAP: 81.4% versus 82.67% estimated by five analysts on average.
Total Revenue- Reported: -6% compared to the -7.53% average estimate based on five analysts.
Geographic Mix- Asia-Pacific: 14% versus 14% estimated by two analysts on average.
Revenue- Product: $744 million versus $712.05 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -16.8% change.
Net Service revenue: $837 million versus the six-analyst average estimate of $850.23 million. The reported number represents a year-over-year change of +6.5%.
Net Revenue- Public Cloud: $151 million compared to the $151.68 million average estimate based on five analysts. The reported number represents a change of +25.8% year over year.
Revenue- Professional and Other Services: $88 million compared to the $77.64 million average estimate based on four analysts.
Revenue- Support: $598 million compared to the $597.37 million average estimate based on four analysts. The reported number represents a change of +1.4% year over year.
Net Revenue- Hybrid Cloud: $1.43 billion versus the four-analyst average estimate of $1.40 billion. The reported number represents a year-over-year change of -8.3%.
Product Revenues- Software: $437 million versus $432.37 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -17.6% change.
Product Revenues- Hardware: $307 million versus the three-analyst average estimate of $299.21 million. The reported number represents a year-over-year change of -15.7%.
Shares of NetApp have returned +11% over the past month versus the Zacks S&P 500 composite's +1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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NetApp (NTAP) Reports Q4 Earnings: What Key Metrics Have to Say
NetApp (NTAP - Free Report) reported $1.58 billion in revenue for the quarter ended April 2023, representing a year-over-year decline of 5.9%. EPS of $1.54 for the same period compares to $1.42 a year ago.
The reported revenue represents a surprise of +2.36% over the Zacks Consensus Estimate of $1.54 billion. With the consensus EPS estimate being $1.35, the EPS surprise was +14.07%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how NetApp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Gross margin - Product - Non GAAP: 55.1% versus 47.72% estimated by six analysts on average.
- Services gross margin - Non-GAAP: 81.4% versus 82.67% estimated by five analysts on average.
- Total Revenue- Reported: -6% compared to the -7.53% average estimate based on five analysts.
- Geographic Mix- Asia-Pacific: 14% versus 14% estimated by two analysts on average.
- Revenue- Product: $744 million versus $712.05 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -16.8% change.
- Net Service revenue: $837 million versus the six-analyst average estimate of $850.23 million. The reported number represents a year-over-year change of +6.5%.
- Net Revenue- Public Cloud: $151 million compared to the $151.68 million average estimate based on five analysts. The reported number represents a change of +25.8% year over year.
- Revenue- Professional and Other Services: $88 million compared to the $77.64 million average estimate based on four analysts.
- Revenue- Support: $598 million compared to the $597.37 million average estimate based on four analysts. The reported number represents a change of +1.4% year over year.
- Net Revenue- Hybrid Cloud: $1.43 billion versus the four-analyst average estimate of $1.40 billion. The reported number represents a year-over-year change of -8.3%.
- Product Revenues- Software: $437 million versus $432.37 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -17.6% change.
- Product Revenues- Hardware: $307 million versus the three-analyst average estimate of $299.21 million. The reported number represents a year-over-year change of -15.7%.
View all Key Company Metrics for NetApp here>>>Shares of NetApp have returned +11% over the past month versus the Zacks S&P 500 composite's +1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.