We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NetApp (NTAP) to Report Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
NetApp (NTAP - Free Report) is scheduled to report fourth-quarter fiscal 2020 earnings on May 27.
On Mar 30, in an 8K filed with the SEC, NetApp announced the withdrawal of its guidance for fourth quarter and full fiscal year 2020, due to the impact of the global coronavirus pandemic.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is currently pegged at $1.41 billion, indicating a decline of 11.3% from the year-ago reported figure.
The consensus for earnings stands at $1.04 cents, suggesting a decline of 14.8% from the year-ago reported figure. Notably, the figure declined 4.6% in the past 30 days,
Notably, the company surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missing the same twice, with the average beat being 6.3%.
Let’s see how things shaped up prior to this announcement.
Factors at Play for Q1 Results
Broader weakness in macroeconomic environment led by coronavirus crisis has been compelling enterprises to trim capital expenditure, which is expected to have affected NetApp’s storage business in the to-be reported quarter.
For the fiscal fourth quarter, the Zacks Consensus Estimate for Product revenues is pegged at $883 million indicating a year-over-year decline of 11.7%. However, Hardware Maintenance & Other Services revenues are pegged at $361 million, indicating year-over-year growth of 3.1%.
Nevertheless, coronavirus crisis has triggered work-from-home wave which has led to increasing adoption of cloud-based storage, which is likely to have driven adoption of NetApp’s hybrid multi-cloud offerings, cloud data services and private cloud offerings. It is expected to have positively influenced fiscal fourth-quarter top line performance.
Moreover, increased momentum of the company’s HCI (or hyper converged infrastructure) and cloud partnerships with VMware , and Alphabet (GOOGL - Free Report) owned Google’s Cloud services, are likely to have driven revenue run rate for Cloud Data and Private Cloud business in the to-be reported quarter.
Further, incremental adoption of Microsoft Azure NetApp Files is expected to have bolstered Cloud Data Services business recurring revenues in the fiscal fourth quarter. Notably, the metric came in at $83 million in the last reported quarter, up 146% on a year-over-year basis.
Moreover, improvement in NAND flash pricing owing to coronavirus-led supply chain constraints is likely to have aided revenue growth in the fiscal fourth quarter.
Further, growing expenses on product development by means of acquisitions bodes well in the long-term, amid stiff competition from fellow storage peers including Pure Storage (PSTG - Free Report) . However, it is likely to have limited margin expansion in the fiscal fourth quarter.
Key Developments
During the quarter under review, NetApp acquired Talon Storage in a bid to centralize and consolidate IT storage infrastructure to the public clouds.
Moreover, the Zacks Rank #3 (Hold) company recently announced acquisition of CloudJumper, a cloud software company offering virtual desktop infrastructure (VDI) solutions, and remote desktop services (RDS) which aids enterprises to accelerate public cloud deployments for work from home setup, branch offices and enterprises. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
NetApp (NTAP) to Report Q4 Earnings: What's in the Cards?
NetApp (NTAP - Free Report) is scheduled to report fourth-quarter fiscal 2020 earnings on May 27.
On Mar 30, in an 8K filed with the SEC, NetApp announced the withdrawal of its guidance for fourth quarter and full fiscal year 2020, due to the impact of the global coronavirus pandemic.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is currently pegged at $1.41 billion, indicating a decline of 11.3% from the year-ago reported figure.
The consensus for earnings stands at $1.04 cents, suggesting a decline of 14.8% from the year-ago reported figure. Notably, the figure declined 4.6% in the past 30 days,
Notably, the company surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missing the same twice, with the average beat being 6.3%.
NetApp, Inc. Price and EPS Surprise
NetApp, Inc. price-eps-surprise | NetApp, Inc. Quote
Let’s see how things shaped up prior to this announcement.
Factors at Play for Q1 Results
Broader weakness in macroeconomic environment led by coronavirus crisis has been compelling enterprises to trim capital expenditure, which is expected to have affected NetApp’s storage business in the to-be reported quarter.
For the fiscal fourth quarter, the Zacks Consensus Estimate for Product revenues is pegged at $883 million indicating a year-over-year decline of 11.7%. However, Hardware Maintenance & Other Services revenues are pegged at $361 million, indicating year-over-year growth of 3.1%.
Nevertheless, coronavirus crisis has triggered work-from-home wave which has led to increasing adoption of cloud-based storage, which is likely to have driven adoption of NetApp’s hybrid multi-cloud offerings, cloud data services and private cloud offerings. It is expected to have positively influenced fiscal fourth-quarter top line performance.
Moreover, increased momentum of the company’s HCI (or hyper converged infrastructure) and cloud partnerships with VMware , and Alphabet (GOOGL - Free Report) owned Google’s Cloud services, are likely to have driven revenue run rate for Cloud Data and Private Cloud business in the to-be reported quarter.
Further, incremental adoption of Microsoft Azure NetApp Files is expected to have bolstered Cloud Data Services business recurring revenues in the fiscal fourth quarter. Notably, the metric came in at $83 million in the last reported quarter, up 146% on a year-over-year basis.
Moreover, improvement in NAND flash pricing owing to coronavirus-led supply chain constraints is likely to have aided revenue growth in the fiscal fourth quarter.
Further, growing expenses on product development by means of acquisitions bodes well in the long-term, amid stiff competition from fellow storage peers including Pure Storage (PSTG - Free Report) . However, it is likely to have limited margin expansion in the fiscal fourth quarter.
Key Developments
During the quarter under review, NetApp acquired Talon Storage in a bid to centralize and consolidate IT storage infrastructure to the public clouds.
Moreover, the Zacks Rank #3 (Hold) company recently announced acquisition of CloudJumper, a cloud software company offering virtual desktop infrastructure (VDI) solutions, and remote desktop services (RDS) which aids enterprises to accelerate public cloud deployments for work from home setup, branch offices and enterprises. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>