Categories Earnings, Technology

NetApp (NTAP) Q2 earnings beat; stock drops on revenue miss

Data management solutions provider NetApp, Inc. (NASDAQ: NTAP) reported stronger-than-expected earnings for the second quarter of 2020, while revenues declined and missed the view. The management provided guidance for the third quarter and fiscal 2020. Shares of the tech firm declined Wednesday evening, immediately after the announcement.

NetApp (NTAP) Q2 earnings beat; stock drops on revenue miss

During the three-month period, total revenue dropped to $1.37 billion from $1.52 billion in the second quarter of 2019 and came in below the market’s forecast.

Also read: Microchip Technology Q2 earnings meet

Product revenues dropped 16% year-over-year, hurt by weakness in both the Strategic and Mature sub-divisions. Region-wise, the Americas accounted for about 56% of total revenue and EMEA 29%. Around 14% of the revenues came from Asia-Pacific.

Earnings up 3%

At $1.09 per share, adjusted earnings were up 3% from last year and above the consensus estimates. On a reported basis, the company reported net profit of $243 million or $1.03 per share, compared to $241 million or $0.91 per share last year.

“We continue to be disciplined in our spending and have a strong financial model with growing gross margins and operating margins that enable us to return cash to shareholders and invest in the long-term health of our business, “ said George Kurian, chief executive officer of NetApp.


For the third quarter, the management expects revenues to be between $1.390 billion and $1.540 billion. Unadjusted earnings per share are expected to be in the $0.96-1.04 range and adjusted earnings in the range of $1.14 per share to 1.22 per share.

Related: NetApp Q1 2020 Earnings Conference Call Transcript

In the whole of 2020, net revenue is expected to decline by around 8% year-over-year. Consolidated gross margin is expected to be 66-67% and operating margin between 18% and 19%.

Capital Return

During the quarter, NetApp returned $611 million to shareholders through share repurchases and dividends. The company also declared a cash dividend of $0.48 per share, to be paid on January 22, 2020, to shareholders of record on January 3, 2020.

After slipping to a two-year low in August, NetApp shares are currently back on the growth path. The stock lost 16% since last year. It closed Wednesday’s regular session lower and dropped further during the extended session.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

Target Corp posts strong results in Q4: Infographic

Target Corporation (NYSE: TGT) reported fourth-quarter 2020 financial results before the opening bell today. The department store chain reported Q4 revenue of $28.3 billion, up 21% year-over-year and higher than

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Add Comment
Viewing Highlight