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NetApp (NTAP) to Report Q1 Earnings: Here's What to Expect
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NetApp (NTAP - Free Report) is slated to release first-quarter fiscal 2024 earnings on Aug 23.
The company projects fiscal first-quarter non-GAAP earnings per share (EPS) between $1.00 and $1.10. The Zacks Consensus Estimate for the same is pegged at $1.08, suggesting a 10% decline from the year-ago quarter’s reported figure.
Net revenues are anticipated to be in the range of $1.325-$1.475 billion. The Zacks Consensus Estimate for the same is pegged at $1.41 billion, suggesting a decline of 11.4% year over year.
NTAP beat estimates in each of the last four quarters. It has a trailing four-quarter earnings surprise of 9.6%, on average.
The company’s performance in the to-be-reported quarter is likely to have been affected due to weakness in global macroeconomic conditions, softening IT spending environment and cloud cost optimization efforts by clients.
Also, unfavorable forex movements, lingering supply-chain troubles, increases in freight and logistical expenses and higher component costs are expected to have acted as headwinds.
Nonetheless, the company’s performance is likely to have benefited from data-driven digital and cloud transformations involving business analytics, artificial intelligence, data security, and application modernization.
The company is also focusing on its Hybrid Cloud business. The company announced its latest ASA (All-Flash SAN Array) A-Series to tackle increasing IT complexity and restricted IT budgets. The company also announced a Ransomware Recovery Guarantee to minimize ransomware attacks. Our estimate for hybrid cloud products is pegged at $1,253.7 million, indicating a year-over-year decline of 14%.
Renewed momentum in Spot by NetApp portfolio might have aided the Public Cloud Services business. The company has debuted Spot Ocean CD, which is an extension of the company’s Spot Ocean solution and will aid users in improving the delivery of cloud applications through deployment automation across clusters and workloads. Our estimate for public cloud products is pegged at $154.6 million, reflecting a year-over-year rise of 17.1%.
NetApp’s strengthening go-to-market activities and various cloud collaborations remain major positives. The company’s strategic collaboration with DreamWorks Animation is likely to have acted as a major tailwind. What Our Model Says
Our proven model does not conclusively predict an earnings beat for NetApp this time around. 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. However, this is not the case here.
NetApp has an Earnings ESP of -1.45% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
The Zacks Consensus Estimate for NVDA’s to-be-reported quarter’s EPS and revenues is pegged at $2.06 and $11.02 billion, respectively. Shares of the company have gained 196.6% in the past year.
Workday (WDAY - Free Report) has an Earnings ESP of +2.01% and a Zacks Rank #1. WDAY is set to report its second-quarter fiscal 2024 results on Aug 24.
The Zacks Consensus Estimate for WDAY’s to-be-reported quarter’s EPS and revenues is pegged at $1.25 and $1.77 billion, respectively. Shares of the company have gained 33.9% in the past year.
Bath & Body Works (BBWI - Free Report) has an Earnings ESP of +12.32% and a Zacks Rank #2. BBWI is set to report its second-quarter fiscal 2023 results on Aug 23.
The Zacks Consensus Estimate for BBWI’s to-be-reported quarter’s EPS and revenues is pegged at 33 cents and $1.57 billion, respectively. Shares of the company have declined 14.3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NetApp (NTAP) to Report Q1 Earnings: Here's What to Expect
NetApp (NTAP - Free Report) is slated to release first-quarter fiscal 2024 earnings on Aug 23.
The company projects fiscal first-quarter non-GAAP earnings per share (EPS) between $1.00 and $1.10. The Zacks Consensus Estimate for the same is pegged at $1.08, suggesting a 10% decline from the year-ago quarter’s reported figure.
Net revenues are anticipated to be in the range of $1.325-$1.475 billion. The Zacks Consensus Estimate for the same is pegged at $1.41 billion, suggesting a decline of 11.4% year over year.
NTAP beat estimates in each of the last four quarters. It has a trailing four-quarter earnings surprise of 9.6%, on average.
NetApp, Inc. Price and EPS Surprise
NetApp, Inc. price-eps-surprise | NetApp, Inc. Quote
Factors to Note
The company’s performance in the to-be-reported quarter is likely to have been affected due to weakness in global macroeconomic conditions, softening IT spending environment and cloud cost optimization efforts by clients.
Also, unfavorable forex movements, lingering supply-chain troubles, increases in freight and logistical expenses and higher component costs are expected to have acted as headwinds.
Nonetheless, the company’s performance is likely to have benefited from data-driven digital and cloud transformations involving business analytics, artificial intelligence, data security, and application modernization.
The company is also focusing on its Hybrid Cloud business. The company announced its latest ASA (All-Flash SAN Array) A-Series to tackle increasing IT complexity and restricted IT budgets. The company also announced a Ransomware Recovery Guarantee to minimize ransomware attacks. Our estimate for hybrid cloud products is pegged at $1,253.7 million, indicating a year-over-year decline of 14%.
Renewed momentum in Spot by NetApp portfolio might have aided the Public Cloud Services business. The company has debuted Spot Ocean CD, which is an extension of the company’s Spot Ocean solution and will aid users in improving the delivery of cloud applications through deployment automation across clusters and workloads. Our estimate for public cloud products is pegged at $154.6 million, reflecting a year-over-year rise of 17.1%.
NetApp’s strengthening go-to-market activities and various cloud collaborations remain major positives. The company’s strategic collaboration with DreamWorks Animation is likely to have acted as a major tailwind.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for NetApp this time around. 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. However, this is not the case here.
NetApp has an Earnings ESP of -1.45% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
NVIDIA (NVDA - Free Report) has an Earnings ESP of +2.39% and a Zacks Rank #1. NVDA is set to report its second-quarter 2023 results on Aug 23. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVDA’s to-be-reported quarter’s EPS and revenues is pegged at $2.06 and $11.02 billion, respectively. Shares of the company have gained 196.6% in the past year.
Workday (WDAY - Free Report) has an Earnings ESP of +2.01% and a Zacks Rank #1. WDAY is set to report its second-quarter fiscal 2024 results on Aug 24.
The Zacks Consensus Estimate for WDAY’s to-be-reported quarter’s EPS and revenues is pegged at $1.25 and $1.77 billion, respectively. Shares of the company have gained 33.9% in the past year.
Bath & Body Works (BBWI - Free Report) has an Earnings ESP of +12.32% and a Zacks Rank #2. BBWI is set to report its second-quarter fiscal 2023 results on Aug 23.
The Zacks Consensus Estimate for BBWI’s to-be-reported quarter’s EPS and revenues is pegged at 33 cents and $1.57 billion, respectively. Shares of the company have declined 14.3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.