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NetApp (NTAP) Set to Report Q1 Earnings: What's in Store?
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NetApp (NTAP - Free Report) is slated to release first-quarter fiscal 2025 earnings on Aug 28.
The company expects non-GAAP earnings per share (EPS) to be between $1.40 and $1.50 for the quarter. The Zacks Consensus Estimate is pegged at $1.46, indicating an increase of 27% from the year-ago level.
Net revenues are anticipated in the range of $1.455-$1.605 billion. The Zacks Consensus Estimate is pegged at $1.53 billion, implying a 7.1% increase from the prior-year level.
NTAP beat estimates in three of the trailing four quarters, delivering an average earnings surprise of 8.8%. It matched the consensus estimate for the remaining quarter.
The stock has gained 75.2% compared with the industry’s growth of 77.6% in the past year.
Image Source: Zacks Investment Research
Factors to Note
Continued momentum in all-flash products (especially the C-Series capacity flash and ASA Block Optimized Flash) and hyperscaler first-party and marketplace services are expected to have driven the top-line performance in the fiscal first quarter. Increasing uptake of the new AFF A-Series, Keystone (storage-as-a-service offering) and ransomware protection solutions is also likely to have been a tailwind.
The company is gaining from data-driven digital and cloud transformations involving business analytics, artificial intelligence, data security and application modernization.
Strengthening go-to-market activities and various cloud collaborations remain other major positives. Margin performance is gaining from a favorable product mix, lower SSD costs and a normalizing supply chain environment.
Our estimate for Hybrid Cloud’s fiscal first-quarter revenues is pegged at $1,368 million, indicating a rise of 7% from the year-ago level.
Management also expects Public Cloud revenues to return to steady growth in fiscal 2025. Our estimate for Public Cloud revenues is pegged at $161.1 million, up 4.6% from the prior-year actual.
However, volatile global macroeconomic conditions, cautious IT spending environment and cloud cost optimization efforts by clients remain concerning.
Also, unfavorable forex movements, high interest rates and price increases on NAND from suppliers are likely to have hurt its earnings.
What Our Model Says
Our proven model does not predict an earnings beat for NTAP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
NTAP has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in this reporting cycle.
American Eagle Outfitters, Inc. (AEO - Free Report) has an Earnings ESP of +1.97% and is set to announce quarterly figures on Aug 29. AEO currently has a Zacks Rank of 3. The Zacks Consensus Estimate for AEO’s to-be-reported quarter’s earnings and revenues is pegged at 38 cents per share and $1.3 billion, respectively. Shares of AEO have risen 35.2% in the past year.
Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +2.68% and presently carries a Zacks Rank #3. BURL is slated to release quarterly numbers on Aug 29. The Zacks Consensus Estimate for BURL’s to-be-reported quarter’s earnings and revenues is pegged at 95 cents per share and $2.42 billion, respectively. Shares of BURL have gained 77.4% in the past year.
Chewy, Inc. (CHWY - Free Report) has an Earnings ESP of +4.55% and currently carries a Zacks Rank #3. CHWY is scheduled to report quarterly earnings on Aug 28. The Zacks Consensus Estimate for CHWY’s to-be-reported quarter’s earnings and revenues is pegged at 22 cents per share and $2.86 billion, respectively. Shares of CHWY have risen 2.3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NetApp (NTAP) Set to Report Q1 Earnings: What's in Store?
NetApp (NTAP - Free Report) is slated to release first-quarter fiscal 2025 earnings on Aug 28.
The company expects non-GAAP earnings per share (EPS) to be between $1.40 and $1.50 for the quarter. The Zacks Consensus Estimate is pegged at $1.46, indicating an increase of 27% from the year-ago level.
Net revenues are anticipated in the range of $1.455-$1.605 billion. The Zacks Consensus Estimate is pegged at $1.53 billion, implying a 7.1% increase from the prior-year level.
NTAP beat estimates in three of the trailing four quarters, delivering an average earnings surprise of 8.8%. It matched the consensus estimate for the remaining quarter.
The stock has gained 75.2% compared with the industry’s growth of 77.6% in the past year.
Image Source: Zacks Investment Research
Factors to Note
Continued momentum in all-flash products (especially the C-Series capacity flash and ASA Block Optimized Flash) and hyperscaler first-party and marketplace services are expected to have driven the top-line performance in the fiscal first quarter. Increasing uptake of the new AFF A-Series, Keystone (storage-as-a-service offering) and ransomware protection solutions is also likely to have been a tailwind.
The company is gaining from data-driven digital and cloud transformations involving business analytics, artificial intelligence, data security and application modernization.
Strengthening go-to-market activities and various cloud collaborations remain other major positives. Margin performance is gaining from a favorable product mix, lower SSD costs and a normalizing supply chain environment.
Our estimate for Hybrid Cloud’s fiscal first-quarter revenues is pegged at $1,368 million, indicating a rise of 7% from the year-ago level.
Management also expects Public Cloud revenues to return to steady growth in fiscal 2025. Our estimate for Public Cloud revenues is pegged at $161.1 million, up 4.6% from the prior-year actual.
NetApp, Inc. Price and EPS Surprise
NetApp, Inc. price-eps-surprise | NetApp, Inc. Quote
However, volatile global macroeconomic conditions, cautious IT spending environment and cloud cost optimization efforts by clients remain concerning.
Also, unfavorable forex movements, high interest rates and price increases on NAND from suppliers are likely to have hurt its earnings.
What Our Model Says
Our proven model does not predict an earnings beat for NTAP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
You can see the complete list of today’s Zacks #1 Rank stocks here.
NTAP has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in this reporting cycle.
American Eagle Outfitters, Inc. (AEO - Free Report) has an Earnings ESP of +1.97% and is set to announce quarterly figures on Aug 29. AEO currently has a Zacks Rank of 3. The Zacks Consensus Estimate for AEO’s to-be-reported quarter’s earnings and revenues is pegged at 38 cents per share and $1.3 billion, respectively. Shares of AEO have risen 35.2% in the past year.
Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +2.68% and presently carries a Zacks Rank #3. BURL is slated to release quarterly numbers on Aug 29. The Zacks Consensus Estimate for BURL’s to-be-reported quarter’s earnings and revenues is pegged at 95 cents per share and $2.42 billion, respectively. Shares of BURL have gained 77.4% in the past year.
Chewy, Inc. (CHWY - Free Report) has an Earnings ESP of +4.55% and currently carries a Zacks Rank #3. CHWY is scheduled to report quarterly earnings on Aug 28. The Zacks Consensus Estimate for CHWY’s to-be-reported quarter’s earnings and revenues is pegged at 22 cents per share and $2.86 billion, respectively. Shares of CHWY have risen 2.3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.