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NetApp (NTAP) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
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NetApp (NTAP - Free Report) reported $1.43 billion in revenue for the quarter ended July 2023, representing a year-over-year decline of 10.1%. EPS of $1.15 for the same period compares to $1.20 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.41 billion, representing a surprise of +1.54%. The company delivered an EPS surprise of +7.48%, with the consensus EPS estimate being $1.07.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: 55.3% versus 54.08% estimated by five analysts on average.
Total Revenue- Reported: -10% versus the five-analyst average estimate of -11.4%.
Services gross margin - Non-GAAP: 81.5% compared to the 81.06% average estimate based on four analysts.
Revenue Geographic Mix - Americas - U.S. Public Sector: 12% versus the three-analyst average estimate of 9.45%.
Revenue- Product: $590 million versus the seven-analyst average estimate of $595.40 million. The reported number represents a year-over-year change of -24.9%.
Net Service revenue: $842 million versus the six-analyst average estimate of $824.28 million. The reported number represents a year-over-year change of +4.5%.
Net Revenue- Public Cloud: $154 million compared to the $153.86 million average estimate based on five analysts. The reported number represents a change of +16.7% year over year.
Revenue- Professional and Other Services: $77 million versus $79.88 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +1.3% change.
Revenue- Support: $611 million versus the four-analyst average estimate of $575.96 million. The reported number represents a year-over-year change of +2.2%.
Net Revenue- Hybrid Cloud: $1.28 billion versus $1.26 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -12.5% change.
Product Revenues- Software: $342 million versus $371.12 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -28.2% change.
Product Revenues- Hardware: $248 million versus $244.58 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -20% change.
Shares of NetApp have returned -3.2% over the past month versus the Zacks S&P 500 composite's -3.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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NetApp (NTAP) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
NetApp (NTAP - Free Report) reported $1.43 billion in revenue for the quarter ended July 2023, representing a year-over-year decline of 10.1%. EPS of $1.15 for the same period compares to $1.20 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.41 billion, representing a surprise of +1.54%. The company delivered an EPS surprise of +7.48%, with the consensus EPS estimate being $1.07.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: 55.3% versus 54.08% estimated by five analysts on average.
- Total Revenue- Reported: -10% versus the five-analyst average estimate of -11.4%.
- Services gross margin - Non-GAAP: 81.5% compared to the 81.06% average estimate based on four analysts.
- Revenue Geographic Mix - Americas - U.S. Public Sector: 12% versus the three-analyst average estimate of 9.45%.
- Revenue- Product: $590 million versus the seven-analyst average estimate of $595.40 million. The reported number represents a year-over-year change of -24.9%.
- Net Service revenue: $842 million versus the six-analyst average estimate of $824.28 million. The reported number represents a year-over-year change of +4.5%.
- Net Revenue- Public Cloud: $154 million compared to the $153.86 million average estimate based on five analysts. The reported number represents a change of +16.7% year over year.
- Revenue- Professional and Other Services: $77 million versus $79.88 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +1.3% change.
- Revenue- Support: $611 million versus the four-analyst average estimate of $575.96 million. The reported number represents a year-over-year change of +2.2%.
- Net Revenue- Hybrid Cloud: $1.28 billion versus $1.26 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -12.5% change.
- Product Revenues- Software: $342 million versus $371.12 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -28.2% change.
- Product Revenues- Hardware: $248 million versus $244.58 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -20% change.
View all Key Company Metrics for NetApp here>>>Shares of NetApp have returned -3.2% over the past month versus the Zacks S&P 500 composite's -3.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.