NetApp shares plunge 10% on Q2 revenue miss & weak outlook

NetApp (NASDAQ: NTAP) shares fell more than 10% after-hours following the company’s reported Q2 revenue miss and worse-than-expected outlook. Revenue came in at $1.66 billion (up 6% year-over-year), compared to the Street estimate of $1.68 billion, while EPS of $1.48 beat the Street estimate of $1.33.

“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.

The company expects Q3/23 EPS in the range of $1.25-$1.35, compared to the Street estimate of $1.44. Revenue is expected in the range of $1.525-1.675 billion, compared to the Street estimate of $1.71 billion.

For the full 2023-year, the company expects EPS in the range of $5.30-$5.50, compared to the Street estimate of $5.52. Net revenue growth is expected in the range of 2-4%.

By Davit Kirakosyan

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