NetApp (NTAP) got here out with quarterly earnings of $1.05 per share, beating the Zacks Consensus
NetApp (NTAP) got here out with quarterly earnings of $1.05 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $1.09 per share a 12 months in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 45.83%. 1 / 4 in the past, it was anticipated that this information storage firm would put up earnings of $0.40 per share when it truly produced earnings of $0.73, delivering a shock of 82.50%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 3 times.
NetApp, which belongs to the Zacks Laptop- Storage Gadgets business, posted revenues of $1.42 billion for the quarter ended October 2020, surpassing the Zacks Consensus Estimate by 8%. This compares to year-ago revenues of $1.37 billion. The corporate has topped consensus income estimates two instances over the past 4 quarters.
The sustainability of the inventory’s quick value motion based mostly on the recently-released numbers and future earnings expectations will largely rely on administration’s commentary on the earnings name.
NetApp shares have misplaced about 14.4% for the reason that starting of the 12 months versus the S&P 500’s acquire of 12.1%.
What’s Subsequent for NetApp?
Whereas NetApp has underperformed the market to date this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist buyers handle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.
Empirical analysis exhibits a robust correlation between near-term inventory actions and tendencies in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a powerful observe report of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for NetApp was blended. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out consistent with the market within the close to future. You possibly can see the whole listing of as we speak’s Zacks #1 Rank (Robust Purchase) shares right here.
Will probably be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $0.85 on $1.35 billion in revenues for the approaching quarter and $3.37 on $5.39 billion in revenues for the present fiscal 12 months.
Buyers ought to be aware of the truth that the outlook for the business can have a fabric impression on the efficiency of the inventory as nicely. When it comes to the Zacks Business Rank, Laptop- Storage Gadgets is at the moment within the backside 29% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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NetApp, Inc. (NTAP): Free Inventory Evaluation Report
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