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NetApp shares rise 5% on earnings beat and upbeat outlook

Published 21/11/2024, 22:34
NetApp shares rise 5% on earnings beat and upbeat outlook
NTAP
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SAN JOSE, Calif. - NetApp Inc. (NASDAQ:NTAP) shares jumped 5.3% in after-hours trading Thursday after the data storage company reported fiscal second-quarter earnings that beat Wall Street expectations and provided an upbeat outlook.

The company posted adjusted earnings of $1.87 per share for the quarter ended October 25, surpassing the analyst consensus estimate of $1.78. Revenue rose 6% year-over-year to $1.66 billion, topping expectations of $1.64 billion.

NetApp's strong performance was driven by robust demand for its all-flash array storage systems, which saw annualized net revenue run rate surge 19% to a record $3.8 billion. The company also reported 43% year-over-year growth in its first party and marketplace cloud storage services revenue.

"Our strong Q2 performance was driven by another record-breaking quarter in all-flash storage and strong performance in first party and marketplace cloud storage services," said CEO George Kurian.

For the current quarter, NetApp forecast adjusted earnings of $1.85 to $1.95 per share on revenue between $1.61 billion and $1.76 billion. The midpoint of the EPS guidance range came in above the $1.85 analyst estimate.

The company also raised its full-year outlook, now expecting fiscal 2025 adjusted earnings of $7.20 to $7.40 per share on revenue of $6.54 billion to $6.74 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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