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Here's What Key Metrics Tell Us About NetApp (NTAP) Q2 Earnings
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NetApp (NTAP - Free Report) reported $1.66 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 6.2%. EPS of $1.87 for the same period compares to $1.58 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.65 billion, representing a surprise of +0.79%. The company delivered an EPS surprise of +4.47%, with the consensus EPS estimate being $1.79.
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: 60.3% versus 59.8% estimated by seven analysts on average.
Total Revenue - % Change: 6% versus 5.4% estimated by six analysts on average.
Gross margin - Services - Non-GAAP: 82.1% compared to the 81.6% average estimate based on six analysts.
Geographic Mix - EMEA: 33% versus 33.5% estimated by four analysts on average.
Geographic Mix - Americas: 52% compared to the 50.1% average estimate based on four analysts.
Geographic Mix - Asia Pacific: 15% compared to the 16.4% average estimate based on four analysts.
Net revenues- Services: $890 million versus $883.74 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +4% change.
Net revenues- Product: $768 million versus $759.15 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +8.8% change.
Net revenues- Public Cloud: $168 million versus $162.38 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.
Net revenues- Hybrid Cloud: $1.49 billion compared to the $1.48 billion average estimate based on five analysts. The reported number represents a change of +5.8% year over year.
Net revenues- Support: $635 million versus $644.64 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +1.9% change.
Net revenues- Professional and Other Services: $87 million versus $82.21 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.1% change.
Shares of NetApp have returned +3.7% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Here's What Key Metrics Tell Us About NetApp (NTAP) Q2 Earnings
NetApp (NTAP - Free Report) reported $1.66 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 6.2%. EPS of $1.87 for the same period compares to $1.58 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.65 billion, representing a surprise of +0.79%. The company delivered an EPS surprise of +4.47%, with the consensus EPS estimate being $1.79.
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: 60.3% versus 59.8% estimated by seven analysts on average.
- Total Revenue - % Change: 6% versus 5.4% estimated by six analysts on average.
- Gross margin - Services - Non-GAAP: 82.1% compared to the 81.6% average estimate based on six analysts.
- Geographic Mix - EMEA: 33% versus 33.5% estimated by four analysts on average.
- Geographic Mix - Americas: 52% compared to the 50.1% average estimate based on four analysts.
- Geographic Mix - Asia Pacific: 15% compared to the 16.4% average estimate based on four analysts.
- Net revenues- Services: $890 million versus $883.74 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +4% change.
- Net revenues- Product: $768 million versus $759.15 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +8.8% change.
- Net revenues- Public Cloud: $168 million versus $162.38 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.
- Net revenues- Hybrid Cloud: $1.49 billion compared to the $1.48 billion average estimate based on five analysts. The reported number represents a change of +5.8% year over year.
- Net revenues- Support: $635 million versus $644.64 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +1.9% change.
- Net revenues- Professional and Other Services: $87 million versus $82.21 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.1% change.
View all Key Company Metrics for NetApp here>>>Shares of NetApp have returned +3.7% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.