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Don't Overlook NetApp (NTAP) International Revenue Trends While Assessing the Stock
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Did you analyze how NetApp (NTAP - Free Report) fared in its international operations for the quarter ending April 2025? Given the widespread global presence of this data storage company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While analyzing NTAP's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The recent quarter saw the company's total revenue reaching $1.73 billion, marking an improvement of 3.8% from the prior-year quarter. Next, we'll examine the breakdown of NTAP's revenue from abroad to comprehend the significance of its international presence.
A Closer Look at NTAP's Revenue Streams Abroad
Europe, Middle East and Africa accounted for 34.01% of the company's total revenue during the quarter, translating to $589 million. Revenues from this region represented a surprise of +0.48%, with Wall Street analysts collectively expecting $586.18 million. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $559 million (34.06%) and $566 million (33.93%) to the total revenue, respectively.
Of the total revenue, $254 million came from Asia Pacific during the last fiscal quarter, accounting for 14.67%. This represented a surprise of -3.77% as analysts had expected the region to contribute $263.96 million to the total revenue. In comparison, the region contributed $249 million, or 15.17%, and $254 million, or 15.23%, to total revenue in the previous and year-ago quarters, respectively.
Projected Revenues in Foreign Markets
It is projected by analysts on Wall Street that NetApp will post revenues of $1.55 billion for the ongoing fiscal quarter, an increase of 0.3% from the year-ago quarter. The expected contributions from Europe, Middle East and Africa and Asia Pacific to this revenue are 37.4% and 17%, translating into $577.71 million and $263.03 million, respectively.
For the full year, a total revenue of $6.76 billion is expected for the company, reflecting an increase of 2.8% from the year before. The revenues from Europe, Middle East and Africa and Asia Pacific are expected to make up 35.8% and 16.3% of this total, corresponding to $2.42 billion and $1.1 billion respectively.
Closing Remarks
The dependency of NetApp on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
The stock has increased by 3.1% over the past month compared to the 3.6% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes NetApp, has increased 7.4% during this time frame. Over the past three months, the company's shares have experienced a gain of 11.8% relative to the S&P 500's 8.3% increase. Throughout this period, the sector overall has witnessed a 12.3% increase.
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Don't Overlook NetApp (NTAP) International Revenue Trends While Assessing the Stock
Did you analyze how NetApp (NTAP - Free Report) fared in its international operations for the quarter ending April 2025? Given the widespread global presence of this data storage company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While analyzing NTAP's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The recent quarter saw the company's total revenue reaching $1.73 billion, marking an improvement of 3.8% from the prior-year quarter. Next, we'll examine the breakdown of NTAP's revenue from abroad to comprehend the significance of its international presence.
A Closer Look at NTAP's Revenue Streams Abroad
Europe, Middle East and Africa accounted for 34.01% of the company's total revenue during the quarter, translating to $589 million. Revenues from this region represented a surprise of +0.48%, with Wall Street analysts collectively expecting $586.18 million. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $559 million (34.06%) and $566 million (33.93%) to the total revenue, respectively.
Of the total revenue, $254 million came from Asia Pacific during the last fiscal quarter, accounting for 14.67%. This represented a surprise of -3.77% as analysts had expected the region to contribute $263.96 million to the total revenue. In comparison, the region contributed $249 million, or 15.17%, and $254 million, or 15.23%, to total revenue in the previous and year-ago quarters, respectively.
Projected Revenues in Foreign Markets
It is projected by analysts on Wall Street that NetApp will post revenues of $1.55 billion for the ongoing fiscal quarter, an increase of 0.3% from the year-ago quarter. The expected contributions from Europe, Middle East and Africa and Asia Pacific to this revenue are 37.4% and 17%, translating into $577.71 million and $263.03 million, respectively.For the full year, a total revenue of $6.76 billion is expected for the company, reflecting an increase of 2.8% from the year before. The revenues from Europe, Middle East and Africa and Asia Pacific are expected to make up 35.8% and 16.3% of this total, corresponding to $2.42 billion and $1.1 billion respectively.
Closing Remarks
The dependency of NetApp on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
At the moment, NetApp has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
NetApp's Recent Stock Market Performance
The stock has increased by 3.1% over the past month compared to the 3.6% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes NetApp, has increased 7.4% during this time frame. Over the past three months, the company's shares have experienced a gain of 11.8% relative to the S&P 500's 8.3% increase. Throughout this period, the sector overall has witnessed a 12.3% increase.