Categories AlphaGraphs, Earnings, Technology

NetApp shares fall despite upbeat 4Q results

NetApp’s (NTAP) fourth quarter revenue and earnings topped Street estimates. Net revenue of $1.64 billion, surged 11% over the prior year period, and adjusted earnings climbed 22% to $1.05 per share. Shares of the data storage provider dipped more than 4% during extended hours of trading.

NetApp’s focus on product transition seems to be bearing fruit. The increase in fourth quarter net sales was driven by strong product revenues. Contributing a lion’s share to the company’s top-line product revenues rose 18.6% to $1.01 billion.

As the company is entering into high-growth markets, sales from strategic solutions of $745 million witnessed a 25% growth from prior year period. It’s worth noting that strategic domain is a major contributor to the product revenues.

NetApp fourth quarter 2018 earnings

 

To tackle the competition, NetApp is undergoing a transition with its foray into flash storage and cloud market. As a result, all-flash array business sales jumped 43% compared to last year with yearly revenue run rate touching $2.4 billion.

NetApp expects the first quarter revenues to be between $1.365 billion and $1.465 billion and earnings, on an adjusted basis, in the range of $0.76 to $0.82 per share. The company has doubled its dividend payout for the quarter to $0.40 per share.

For fiscal 2019, the company forecasts its gross margins, on an adjusted basis, to be nearly 63%, down 400 basis points compared to 63.4% in 2018. So far in 2018, the share price has increased more than 21% and for the last 12 months, it has skyrocketed nearly 70%.

Most Popular

PayPal Holdings (PYPL) Q1 2021 revenue up 31%; earnings beat

PayPal Holdings Inc. (NASDAQ: PYPL) reported stronger-than-expected earnings and revenues for the first quarter of 2021. Shares of the payment service provider gained during Wednesday’s extended trading session soon after

Infographic: How Twilio (TWLO) performed in Q1 2021

Twilio (NYSE: TWLO) reported first quarter 2021 earnings results today. Revenue increased 62% year-over-year to $590 million. GAAP net loss widened to $206 million, or $1.24 per share, compared to

Uber Technologies reports Q1 loss of 6 cents per share: Infographic

Uber Technologies (NYSE: UBER) reported first-quarter 2021 financial results after the regular market hours on Wednesday. The ride-hailing company reported Q1 revenue excluding the UK accrual of $3.5 billion, up

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top