NetApp stock rallies on earnings beat, long-term outlook

NetApp Inc. shares (NTAP) rallied in the extended session Wednesday after the cloud-data software company topped Wall Street estimates for the quarter and offered a conservative near-term outlook. NetApp shares rose 6% after hours, following a 4% decline in the regular session to close at $66.35. The company reported fourth-quarter net income of $245 million, or $1.13 a share, compared with $259 million, or $1.14 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.54 a share, compared with $1.42 a share in the year-ago period. Revenue declined to $1.58 billion from $1.68 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast $1.35 a share on revenue of $1.54 billion. NetApp forecast fiscal first-quarter earnings of $1 to $1.10 a share on revenue of $1.33 billion to $1.48 billion, while analysts had forecast $1.20 a share on revenue of $1.47 billion. The company also forecast adjusted earnings of $5.65 to $5.85 a share for the year on a low- to mid-single-digit percent revenue decline. Analysts expect $5.58 a share on revenue of $6.22 billion, or a decline of 2.3% from fiscal 2023's $6.36 billion. NetApp shares closed Wednesday up 10.5% year to date, while the S&P 500 index has gained 8.9% and the Nasdaq Composite Index has rallied 23.6%.

-Wallace Witkowski

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05-31-23 1743ET

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