NetApp (NASDAQ:NTAP) Updates Q2 2020 Earnings Guidance

NetApp (NASDAQ:NTAP) updated its second quarter 2020 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of $0.91-0.99 for the period, compared to the Thomson Reuters consensus estimate of $0.87. The company issued revenue guidance of $1.325-1.475 billion, compared to the consensus revenue estimate of $1.35 billion.NetApp also updated its FY 2020 guidance to EPS.

Shares of NTAP stock traded down $1.98 on Wednesday, hitting $45.01. The company had a trading volume of 2,442,249 shares, compared to its average volume of 2,731,839. The stock has a market cap of $10.76 billion, a price-to-earnings ratio of 11.20, a P/E/G ratio of 0.90 and a beta of 1.48. The company’s 50-day moving average price is $57.02. The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.42 and a current ratio of 1.45. NetApp has a twelve month low of $44.55 and a twelve month high of $88.08.

NetApp (NASDAQ:NTAP) last released its earnings results on Wednesday, May 22nd. The data storage provider reported $1.10 EPS for the quarter, missing the consensus estimate of $1.13 by ($0.03). NetApp had a return on equity of 71.66% and a net margin of 19.02%. The business had revenue of $1.59 billion for the quarter, compared to analyst estimates of $1.64 billion. During the same period in the prior year, the business earned $1.05 EPS. The company’s revenue for the quarter was down 3.2% on a year-over-year basis. As a group, analysts expect that NetApp will post 3.53 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 23rd. Shareholders of record on Friday, October 4th will be paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 4.27%. NetApp’s dividend payout ratio (DPR) is currently 47.76%.

Several equities research analysts have issued reports on the company. Bank of America lowered NetApp from a buy rating to a neutral rating in a research note on Friday, August 2nd. Longbow Research lowered NetApp from a buy rating to a neutral rating in a research note on Monday, July 29th. Maxim Group reaffirmed a buy rating and set a $65.00 price target on shares of NetApp in a research note on Monday, August 5th. Piper Jaffray Companies lowered NetApp from an overweight rating to a neutral rating and dropped their price target for the stock from $75.00 to $48.00 in a research note on Friday, August 2nd. Finally, Morgan Stanley reaffirmed a sell rating and set a $41.00 price target on shares of NetApp in a research note on Sunday. Six research analysts have rated the stock with a sell rating, fourteen have given a hold rating and nine have given a buy rating to the company’s stock. NetApp has an average rating of Hold and a consensus target price of $65.00.

In related news, CFO Ronald J. Pasek sold 58,052 shares of the company’s stock in a transaction that occurred on Monday, June 3rd. The stock was sold at an average price of $58.49, for a total value of $3,395,461.48. Following the transaction, the chief financial officer now directly owns 122,806 shares of the company’s stock, valued at approximately $7,182,922.94. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Matthew K. Fawcett sold 11,195 shares of the company’s stock in a transaction that occurred on Monday, June 3rd. The shares were sold at an average price of $58.76, for a total value of $657,818.20. Following the completion of the transaction, the senior vice president now directly owns 76,722 shares in the company, valued at $4,508,184.72. The disclosure for this sale can be found here. Insiders sold a total of 161,092 shares of company stock worth $9,676,120 in the last 90 days. 0.33% of the stock is currently owned by company insiders.

About NetApp

NetApp, Inc provides software, systems, and services to manage and share data on-premises, and private and public clouds worldwide. It offers cloud data services, such as ONTAP cloud storage data management and NetApp cloud sync data synchronization services; NetApp SaaS backup for Microsoft Office 365; NetApp cloud backup solutions; OnCommand management software and management integration tools; and NetApp private storage for cloud.

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Earnings History and Estimates for NetApp (NASDAQ:NTAP)

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