NetApp Inc. Down 8.30% To $65.78 After Earnings Beat

NetApp Inc. (NTAP) beat out earnings estimates for Q2 2023 this afternoon.

Analyst expectations for NetApp Inc. earnings per share (EPS) were at $1.33, with the company surpassing those estimates with a reported EPS of $1.48, leading to a positive surprise of $0.15 per share (11%). NetApp Inc.'s earnings rose 16% year-over-year as the firm reported an EPS of $1.28 in its year-ago quarter. The positive annual growth shows the Technology company is performing well amid recent economic conditions.

Analyst projections for NetApp Inc. revenue came in at a consensus of $1.7 billion. Second-Quarter revenues missed estimates for $1.7 billion by $17 million (1%). The company achieved 6% growth year-over-year compared to the firm's revenue of $1.6 billion from the year-ago quarter. The higher earnings growth relative to revenue signals NetApp Inc. has improved its profit margin.

The stock is down 8.30% to $65.78 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 39. Meanwhile, the average Wall Street analyst rated the stock a Buy.

NetApp is a leading provider of enterprise data management and storage solutions. The company's three operating business units are products, software maintenance, and hardware maintenance. NetApp transitioned from a data center storage firm to a company with software data management solutions for multicloud environments. The California-headquartered company sells globally and has approximately 10,000 employees.