Seeking Alpha

NetApp's guidance below consensus, shares -0.6% AH

  • NetApp (NTAP) expects FQ3 revenue of $1.575B-$1.675B and EPS of $0.68-$0.73, largely below a consensus of $1.69B and $0.73. The enterprise storage giant asserts it's gaining share, but also says it's facing "an ongoing uncertain macro environment."
  • Revenue grew only 1% Y/Y in FQ2 after rising 5% in FQ1. Branded (non-OEM) revenue rose 5% vs. 9% in FQ1.
  • However, with NetApp's numbers having come a month after EMC and IBM provided disappointing Q3 storage hardware figures, some bad news was priced in.
  • $151M was spent on buybacks. That helped EPS beat consensus in spite of a revenue miss.
  • Enterprise storage sales have been hurt by soft IT hardware spend, U.S. federal weakness, and the cannibalizing impact of cloud infrastructure services running on commodity hardware.
  • CC at 5:30PM ET. FQ2 results, PR
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