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NetApp (NTAP) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates
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In its upcoming report, NetApp (NTAP - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.69 per share, reflecting an increase of 23.4% compared to the same period last year. Revenues are forecasted to be $1.59 billion, representing a year-over-year increase of 4.4%.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain NetApp metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts' assessment points toward 'Revenue- Product' reaching $724.83 million. The estimate suggests a change of +6.3% year over year.
The collective assessment of analysts points to an estimated 'Net Service revenue' of $867.68 million. The estimate points to a change of +2.8% from the year-ago quarter.
Analysts expect 'Net Revenue- Public Cloud' to come in at $152.51 million. The estimate points to a change of +1.7% from the year-ago quarter.
Analysts forecast 'Revenue- Support' to reach $630.25 million. The estimate indicates a year-over-year change of +2.3%.
It is projected by analysts that the 'Net Revenue- Hybrid Cloud' will reach $1.44 billion. The estimate points to a change of +4.9% from the year-ago quarter.
According to the collective judgment of analysts, 'Product Revenues- Software' should come in at $415.48 million. The estimate indicates a year-over-year change of +6.5%.
The consensus estimate for 'Product Revenues- Hardware' stands at $307.30 million. The estimate indicates a change of +5.2% from the prior-year quarter.
Analysts predict that the 'Gross margin - Product - Non GAAP' will reach 59.4%. Compared to the present estimate, the company reported 46.5% in the same quarter last year.
The combined assessment of analysts suggests that 'Services gross margin - Non-GAAP' will likely reach 81.2%. The estimate compares to the year-ago value of 83.3%.
Based on the collective assessment of analysts, 'Geographic Mix- Asia-Pacific' should arrive at 15.6%. The estimate compares to the year-ago value of 14%.
The average prediction of analysts places 'Geographic Mix- EMEA' at 33.5%. The estimate compares to the year-ago value of 32%.
The consensus among analysts is that 'Billings' will reach $1.76 billion. Compared to the current estimate, the company reported $1.57 billion in the same quarter of the previous year.
Shares of NetApp have demonstrated returns of -0.8% over the past month compared to the Zacks S&P 500 composite's +4.7% change. With a Zacks Rank #3 (Hold), NTAP is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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NetApp (NTAP) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates
In its upcoming report, NetApp (NTAP - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.69 per share, reflecting an increase of 23.4% compared to the same period last year. Revenues are forecasted to be $1.59 billion, representing a year-over-year increase of 4.4%.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain NetApp metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts' assessment points toward 'Revenue- Product' reaching $724.83 million. The estimate suggests a change of +6.3% year over year.
The collective assessment of analysts points to an estimated 'Net Service revenue' of $867.68 million. The estimate points to a change of +2.8% from the year-ago quarter.
Analysts expect 'Net Revenue- Public Cloud' to come in at $152.51 million. The estimate points to a change of +1.7% from the year-ago quarter.
Analysts forecast 'Revenue- Support' to reach $630.25 million. The estimate indicates a year-over-year change of +2.3%.
It is projected by analysts that the 'Net Revenue- Hybrid Cloud' will reach $1.44 billion. The estimate points to a change of +4.9% from the year-ago quarter.
According to the collective judgment of analysts, 'Product Revenues- Software' should come in at $415.48 million. The estimate indicates a year-over-year change of +6.5%.
The consensus estimate for 'Product Revenues- Hardware' stands at $307.30 million. The estimate indicates a change of +5.2% from the prior-year quarter.
Analysts predict that the 'Gross margin - Product - Non GAAP' will reach 59.4%. Compared to the present estimate, the company reported 46.5% in the same quarter last year.
The combined assessment of analysts suggests that 'Services gross margin - Non-GAAP' will likely reach 81.2%. The estimate compares to the year-ago value of 83.3%.
Based on the collective assessment of analysts, 'Geographic Mix- Asia-Pacific' should arrive at 15.6%. The estimate compares to the year-ago value of 14%.
The average prediction of analysts places 'Geographic Mix- EMEA' at 33.5%. The estimate compares to the year-ago value of 32%.
The consensus among analysts is that 'Billings' will reach $1.76 billion. Compared to the current estimate, the company reported $1.57 billion in the same quarter of the previous year.
View all Key Company Metrics for NetApp here>>>
Shares of NetApp have demonstrated returns of -0.8% over the past month compared to the Zacks S&P 500 composite's +4.7% change. With a Zacks Rank #3 (Hold), NTAP is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>