Needham & Company Downgrades NetApp (NTAP) to Hold Post Q4; 'Worst Conference Calls in Years'
Needham & Company downgraded NetApp (NASDAQ: NTAP) from Buy to Hold following weak Q4 and the "worst" conference calls in years.
Analyst Richard Kugele commented, "In what was easily one of the worst conference calls we have heard in years, NTAP missed F4Q expectations and offered abysmal F1Q/F16 guidance. Clustered ONTAP woes within the Americas Commercial business that began in F3Q continued in F4Q, leading to the mixed quarter. But that wasn’t all, as the issues flowed from indirect and direct sales execution issues to FX, a factory move, migration to Cloud - all were highlighted as weighing on results. With transition challenges continuing through 1HF16 and the required dramatic ramp in 2H sales that would be required to reach even flat yoy revenue, we downgrade to Hold from Buy."
The firm adjusted FY 2016 EPS from $0.83 to $0.96 and set FY 2017 EPS at $0.72.
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Shares of NetApp closed at $35.33 yesterday.