NetApp (NASDAQ:NTAP) Releases Q3 Earnings Guidance

NetApp (NASDAQ:NTAP) updated its third quarter earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of $1.85-1.95 for the period, compared to the consensus estimate of $1.85. The company issued revenue guidance of $1.61-1.76 billion, compared to the consensus revenue estimate of $1.68 billion. NetApp also updated its FY 2025 guidance to 7.200-7.400 EPS.

NetApp Stock Up 7.8 %

Shares of NTAP opened at $136.50 on Friday. The firm has a market cap of $27.95 billion, a P/E ratio of 26.66, a price-to-earnings-growth ratio of 3.13 and a beta of 1.24. NetApp has a 12-month low of $77.56 and a 12-month high of $136.50. The company’s 50-day moving average price is $121.77 and its 200 day moving average price is $122.39. The company has a current ratio of 0.96, a quick ratio of 0.91 and a debt-to-equity ratio of 1.34.

NetApp (NASDAQ:NTAP) last issued its quarterly earnings data on Thursday, November 21st. The data storage provider reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.78 by $0.09. The firm had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.65 billion. NetApp had a net margin of 17.01% and a return on equity of 121.41%. NetApp’s revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the firm earned $1.23 EPS. On average, sell-side analysts forecast that NetApp will post 5.71 earnings per share for the current year.

NetApp Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 22nd. Shareholders of record on Friday, January 3rd will be paid a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a yield of 1.52%. NetApp’s dividend payout ratio (DPR) is presently 40.62%.

Wall Street Analyst Weigh In

NTAP has been the topic of a number of recent research reports. Citigroup boosted their price target on shares of NetApp from $120.00 to $130.00 and gave the stock a “neutral” rating in a research note on Thursday, August 15th. Evercore ISI boosted their price target on shares of NetApp from $120.00 to $130.00 and gave the stock an “in-line” rating in a research note on Monday, August 12th. Bank of America upped their target price on shares of NetApp from $115.00 to $121.00 and gave the stock an “underperform” rating in a research note on Friday. Morgan Stanley upped their target price on shares of NetApp from $127.00 to $132.00 and gave the stock an “equal weight” rating in a research note on Friday. Finally, Stifel Nicolaus upped their target price on shares of NetApp from $138.00 to $140.00 and gave the stock a “buy” rating in a research note on Thursday, August 29th. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $133.38.

Insider Activity

In other news, CAO Lorenzo Daniel De sold 326 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $117.44, for a total transaction of $38,285.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO George Kurian sold 8,500 shares of the company’s stock in a transaction that occurred on Monday, October 21st. The stock was sold at an average price of $126.11, for a total value of $1,071,935.00. Following the sale, the chief executive officer now owns 292,778 shares of the company’s stock, valued at $36,922,233.58. This trade represents a 2.82 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 23,049 shares of company stock valued at $2,807,851. 0.47% of the stock is currently owned by company insiders.

NetApp Company Profile

NetApp, Inc provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID.