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NetApp stock edges up as Q4 revenue tops expectations

EditorRachael Rajan
Published 30/05/2024, 21:34
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NTAP
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SAN JOSE, Calif. - NetApp (NASDAQ:NTAP), a leader in cloud data services, reported fourth-quarter earnings that topped analyst estimates, with a slight revenue beat for the period. NTAP shares were up 0.6% in afterhours trading.

The company announced Q4 adjusted EPS of $1.80, just a cent higher than the analyst consensus of $1.79. Revenue for the quarter rose to $1.67 billion, surpassing the consensus estimate of $1.65 billion.

For the first quarter of fiscal year 2025, NetApp provided earnings guidance in the range of $1.40 to $1.50 per share, straddling the analyst consensus of $1.43. Revenue guidance for Q1 2025 is projected between $1.46 billion and $1.61 billion, with the midpoint below the consensus estimate of $1.53 billion. For the full fiscal year 2025, the company forecasts EPS of $6.80 to $7.00, compared to the consensus of $6.74. Revenue expectations for FY2025 are set at $6.45 billion to $6.65 billion, with the midpoint slightly below the analyst consensus of $6.53 billion.

NetApp's results reflect a strong finish to the fiscal year 2024, with record annual gross margin, operating margin, EPS, operating cash flow, and free cash flow. The company's focus on unified data storage, spanning various data types, price points, and hybrid multicloud environments, appears to be paying off. CEO George Kurian commented on the results, stating, "We concluded fiscal year 2024 on a high note, delivering company records for annual gross margin, operating margin, EPS, operating cash flow, and free cash flow and building positive momentum."

The company also announced an increase in its quarterly dividend to $0.52 per share and a new share repurchase authorization of an additional $1 billion, signaling confidence in its financial position and commitment to returning value to shareholders.

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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