NetApp (NTAP) tumbles 15% after cutting guidance, analysts lower numbers
- Wall Street ends down after stunning jobs growth raises Fed questions
- Elon Musk wins 'funding secured' trial
- U.S. nonfarm payroll growth blows past forecasts in January, up 517k
- Analysts defend Apple (AAPL) as earnings miss drags shares lower
- Amazon (AMZN) drops after earnings, analysts worried about AWS uncertainty
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
Shares of NetApp (NASDAQ: NTAP) are trading almost 15% lower in pre-open Wednesday after the company delivered mixed FQ2 results and slashed its full-year forecast.
NetApp delivered an adjusted EPS of $1.48 on revenue of $1.66 billion, which compares to the consensus of $1.33 on sales of $1.68B. Hybrid cloud net revenue rose by almost 3% to $1.52 billion, in line with the consensus.
“We delivered a solid quarter in a dynamic environment, with all-time highs for Q2 revenue, billings, gross profit dollars, operating income, and EPS,” said George Kurian, CEO of NetApp.
At the midpoint of its FQ3 forecast, NetApp expected adjusted EPS at $1.30 on revenue of $1.605B. This is lower than the expectations of $1.44 on sales of $1.71B. On a full-year basis, NTAP said it expects revenue to increase between +2% and +4% while the adjusted EPS is seen at $5.40 (up or down $0.10), again below the consensus of $5.51.
Morgan Stanley analyst Meta Marshall cut the price target to $66 per share from $71 after “light” FQ2 results.
“NTAP's PCS growth engine sputtered in FQ2, as high tech and service provider customers became more conservative with spend and pace of cloud transitions. While macro weakness could have been anticipated on premise business, surprised to the degree to which it impacted the cloud business as well,” Marshall wrote in a note.
Stifel analyst Matthew Sheerin also slashed the price target as he went to $75 from $78 per share.
“We are maintaining our Hold rating, as we believe it is too early to call the bottom of this down-spending cycle,” the analyst said after earnings.
By Senad Karaahmetovic
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Cigna Corp. (CI) tops earnings, but misses revenue expectations
- Qualcomm misses on Q1 revenues, guides Q2 below Street; shares fall
- Bill.com (BILL) tumbles 20% on fading TPV momentum, earns 3 downgrades
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Earnings, Guidance, Hot Earnings, Hot List
Related EntitiesStifel, Morgan Stanley, Earnings, Pre Market Movers, Senad Karaahmetovic
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!