NetApp kicks off new fiscal year with upbeat earnings

NetApp Inc. (NTAP) reported a 116% jump in earnings for the first quarter of 2019 driven by strong product revenues. The top and bottom line topped analysts’ expectations. The company guided second-quarter earnings and revenue in line with consensus. Shares of the data storage provider inched up by 0.6% during extended hours of trading.

Net income for the quarter climbed by 116% to $283 million or $1.05 per share. Non-GAAP earnings increased by 73% to $1.04 per share. Revenue rose by 12% to $1.47 billion. The results for the previous year quarter was restated to include the adoption of the new accounting rule for revenue from contracts with customers.

Looking ahead into the second quarter, the company expects net revenues in the range of $1.45 billion to $1.55 billion, GAAP EPS of $0.79 to $0.85, and non-GAAP EPS of $0.94 to $1.00.

Product revenues for the third quarter increased 20% year-over-year helped by a rise in revenue from strategic product and higher mature product revenues. Revenue from software maintenance rose by 3%, while that from hardware maintenance declined marginally by 0.3%.

The next cash dividend of $0.40 per share will be paid on October 24, 2018, to shareholders of record as of October 5, 2018. The company has returned $605 million to shareholders through share repurchases and cash dividends.

Shares of NetApp ended Wednesday’s regular trading session down 0.35% at $82.47 on the Nasdaq. The stock has risen more than 96% for the past year and more than 49% for the year-to-date.