NetApp (NTAP) got here out with quarterly earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.79 per share. This compares to earnings of $1.58 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 4.47%. 1 / 4 in the past, it was anticipated that this information storage firm would put up earnings of $1.46 per share when it truly produced earnings of $1.56, delivering a shock of 6.85%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 3 times.
NetApp
The sustainability of the inventory’s instant worth motion based mostly on the recently-released numbers and future earnings expectations will largely rely on administration’s commentary on the earnings name.
NetApp shares have added about 40% because the starting of the 12 months versus the S&P 500’s acquire of 24.1%.
What’s Subsequent for NetApp?
Whereas NetApp has outperformed the market thus far this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist buyers deal with that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.
Empirical analysis reveals a powerful correlation between near-term inventory actions and tendencies in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a formidable observe file of harnessing the ability of earnings estimate revisions.
Forward of this earnings release, the estimate revisions development for NetApp: favorable. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #2 (Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You’ll be able to see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It is going to be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $1.83 on $1.67 billion in revenues for the approaching quarter and $7.09 on $6.59 billion in revenues for the present fiscal 12 months.
Buyers must be aware of the truth that the outlook for the trade can have a fabric affect on the efficiency of the inventory as effectively. When it comes to the Zacks Trade Rank, Pc- Storage Gadgets is at the moment within the high 12% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
One different inventory from the identical trade, Pure Storage (PSTG), is but to report outcomes for the quarter ended October 2024. The outcomes are anticipated to be launched on December 3.
This information storage firm is predicted to put up quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -14%. The consensus EPS estimate for the quarter has been revised 1.5% decrease over the past 30 days to the present stage.
Pure Storage’s revenues are anticipated to be $814.77 million, up 6.8% from the year-ago quarter.
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NetApp, Inc. (NTAP) : Free Stock Analysis Report
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