NetApp Inc. (NTAP) reported a 39% jump in earnings for the second quarter driven by strong product revenues. The results exceeded analysts’ expectations. The data storage provider guided third-quarter earnings and revenue in line with consensus. Despite this, shares of the company inched down over 5% during extended hours of trading.
Net income climbed by 39% to $241 million or $0.91 per share. Non-GAAP earnings jumped by 32.5% to $1.06 per share. Revenue rose by 7% to $1.52 billion.
Looking ahead into the third quarter, the company expects net revenues in the range of $1.55 billion to $1.65 billion and GAAP earnings in the range of $0.96 to $1.02 per share. Non-GAAP earnings are anticipated to be in the range of $1.12 to $1.18 per share.
For the second quarter, product revenues increased 11% year-over-year helped by a rise in revenue from strategic product and higher mature product revenues. Revenue from software maintenance rose by 5.3%, while that from hardware maintenance declined by 1.1%.
On a geographic mix, the majority of the revenue came from the Americas of 57% as Americas Commercial provided a large share in the revenue accumulation. The US Public Sector contributed a 14% while EMEA and the Asia Pacific assisted in a 28% and 15% of revenue share, respectively.
All-flash array annualized net revenue run rate of $2.2 billion increased 29% year-over-year. Cloud data services net revenue run rate was $27 million for the second quarter.
The next cash dividend of $0.40 per share will be paid on January 23, 2018, to shareholders of record as of January 4, 2018. The company has returned $663 million to shareholders through share repurchases and cash dividends.
Shares of NetApp ended Wednesday’s regular trading session down 1.09% at $78.03 on the Nasdaq. The stock has risen over 41% in the year so far and over 71% in the past year.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to