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NetApp (NTAP) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended January 2024, NetApp (NTAP - Free Report) reported revenue of $1.61 billion, up 5.2% over the same period last year. EPS came in at $1.94, compared to $1.37 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.59 billion, representing a surprise of +0.85%. The company delivered an EPS surprise of +14.79%, with the consensus EPS estimate being $1.69.
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:
Total Revenue- Reported: 5% versus the seven-analyst average estimate of 4.4%.
Gross margin - Product - Non GAAP: 62.5% versus the seven-analyst average estimate of 59.4%.
Product- Reported: 10% compared to the 6.1% average estimate based on six analysts.
Services gross margin - Non-GAAP: 81.5% versus 81.2% estimated by six analysts on average.
Revenue- Product: $724 million compared to the $724.83 million average estimate based on seven analysts. The reported number represents a change of +6.2% year over year.
Net Service revenue: $859 million versus the seven-analyst average estimate of $867.68 million. The reported number represents a year-over-year change of +1.8%.
Net Revenue- Public Cloud: $151 million versus the five-analyst average estimate of $152.51 million. The reported number represents a year-over-year change of +0.7%.
Revenue- Professional and Other Services: $77 million compared to the $82.24 million average estimate based on four analysts.
Revenue- Support: $631 million versus the four-analyst average estimate of $630.25 million. The reported number represents a year-over-year change of +2.4%.
Net Revenue- Hybrid Cloud: $1.46 billion compared to the $1.44 billion average estimate based on four analysts. The reported number represents a change of +5.7% year over year.
Product Revenues- Software: $412 million versus $415.48 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.6% change.
Product Revenues- Hardware: $335 million versus $307.30 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +14.7% change.
Shares of NetApp have returned +1% over the past month versus the Zacks S&P 500 composite's +3.9% 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) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended January 2024, NetApp (NTAP - Free Report) reported revenue of $1.61 billion, up 5.2% over the same period last year. EPS came in at $1.94, compared to $1.37 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.59 billion, representing a surprise of +0.85%. The company delivered an EPS surprise of +14.79%, with the consensus EPS estimate being $1.69.
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:
- Total Revenue- Reported: 5% versus the seven-analyst average estimate of 4.4%.
- Gross margin - Product - Non GAAP: 62.5% versus the seven-analyst average estimate of 59.4%.
- Product- Reported: 10% compared to the 6.1% average estimate based on six analysts.
- Services gross margin - Non-GAAP: 81.5% versus 81.2% estimated by six analysts on average.
- Revenue- Product: $724 million compared to the $724.83 million average estimate based on seven analysts. The reported number represents a change of +6.2% year over year.
- Net Service revenue: $859 million versus the seven-analyst average estimate of $867.68 million. The reported number represents a year-over-year change of +1.8%.
- Net Revenue- Public Cloud: $151 million versus the five-analyst average estimate of $152.51 million. The reported number represents a year-over-year change of +0.7%.
- Revenue- Professional and Other Services: $77 million compared to the $82.24 million average estimate based on four analysts.
- Revenue- Support: $631 million versus the four-analyst average estimate of $630.25 million. The reported number represents a year-over-year change of +2.4%.
- Net Revenue- Hybrid Cloud: $1.46 billion compared to the $1.44 billion average estimate based on four analysts. The reported number represents a change of +5.7% year over year.
- Product Revenues- Software: $412 million versus $415.48 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.6% change.
- Product Revenues- Hardware: $335 million versus $307.30 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +14.7% change.
View all Key Company Metrics for NetApp here>>>Shares of NetApp have returned +1% over the past month versus the Zacks S&P 500 composite's +3.9% 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.