NetApp (NTAP) Misses Q3 EPS by 2c, Revenues Miss; Offers Q4 EPS Views Below Consensus, Provides Q4 Revenue Outlo

NetApp (NASDAQ: NTAP) reported Q3 EPS of $1.16, $0.02 worse than the analyst estimate of $1.18. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.46 billion.

• All-flash array annualized net revenue run rate of $2.3 billion increased 7% quarter-over-quarter
• NetApp™ cloud data services annualized recurring revenue of approximately $83 million, an increase of 146% year-over-year
• Consolidated GAAP gross margin of 67.0%, non-GAAP gross margin of 67.8%*
• $420 million in cash from operations; $388 million in free cash flow
• $608 million returned to shareholders in share repurchases and cash dividends

“Our third quarter results, highlighted by strong gross margins, cash flow and operating leverage, reflect our continued operational discipline. Customers are on a journey to the cloud and are looking to NetApp to help them address the complexities of data management in hybrid multicloud,” said George Kurian, chief executive officer. “We see significant opportunity ahead and are focused on replicating the areas where we have proven success. Our strong business model enables us to navigate the market dynamics, while making the strategic investments necessary to position the company for long-term growth.”

GUIDANCE:

NetApp sees Q4 2020 EPS of $1.28-$1.36, versus the consensus of $1.39. NetApp sees Q4 2020 revenue of $1.455-1.605 billion, versus the consensus of $1.57 billion.

For earnings history and earnings-related data on NetApp (NTAP) click here.

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