NetApp NTAP is gearing up to announce its quarterly earnings on Thursday, 2024-11-21. Here's a quick overview of what investors should know before the release.
Analysts are estimating that NetApp will report an earnings per share (EPS) of $1.78.
Anticipation surrounds NetApp's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Performance in Previous Earnings
The company's EPS beat by $0.11 in the last quarter, leading to a 9.64% drop in the share price on the following day.
Here's a look at NetApp's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.45 | 1.78 | 1.69 | 1.39 |
| EPS Actual | 1.56 | 1.80 | 1.94 | 1.58 |
| Price Change % | -10.0% | 3.0% | 18.0% | 15.0% |
Market Performance of NetApp's Stock
Shares of NetApp were trading at $122.2 as of November 19. Over the last 52-week period, shares are up 55.99%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Take on NetApp
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on NetApp.
A total of 8 analyst ratings have been received for NetApp, with the consensus rating being Neutral. The average one-year price target stands at $134.38, suggesting a potential 9.97% upside.
Understanding Analyst Ratings Among Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Western Digital, Hewlett Packard and Super Micro Computer, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Western Digital is maintaining an Buy status according to analysts, with an average 1-year price target of $91.55, indicating a potential 25.08% downside.
- For Hewlett Packard, analysts project an Neutral trajectory, with an average 1-year price target of $21.82, indicating a potential 82.14% downside.
- The consensus among analysts is an Neutral trajectory for Super Micro Computer, with an average 1-year price target of $386.25, indicating a potential 216.08% upside.
Peer Metrics Summary
In the peer analysis summary, key metrics for Western Digital, Hewlett Packard and Super Micro Computer are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| NetApp | Neutral | 7.61% | $1.10B | 23.90% |
| Western Digital | Buy | 48.91% | $1.55B | 4.28% |
| Hewlett Packard | Neutral | 10.11% | $2.44B | 2.34% |
| Super Micro Computer | Neutral | 37.87% | $597.37M | 6.68% |
Key Takeaway:
NetApp ranks in the middle among its peers for revenue growth, with one peer showing significantly higher growth. NetApp's gross profit is higher than two peers but lower than one. NetApp's return on equity is the highest among its peers.
About NetApp
NetApp Inc is a provider of enterprise data management and storage solutions. The company's segments include Hybrid Cloud and Public Cloud. It generates maximum revenue from the Hybrid Cloud segment. The Hybrid Cloud segment offers a portfolio of storage management and infrastructure solutions that help customers recast their traditional data centers with the power of cloud. This portfolio is designed to operate with public clouds to unlock the potential of hybrid, multi-cloud operations. Hybrid Cloud is composed of software, hardware, and related support, as well as professional and other services.
Unraveling the Financial Story of NetApp
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: NetApp's remarkable performance in 3 months is evident. As of 31 July, 2024, the company achieved an impressive revenue growth rate of 7.61%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 16.09%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): NetApp's ROE stands out, surpassing industry averages. With an impressive ROE of 23.9%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): NetApp's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.58%, the company showcases efficient use of assets and strong financial health.
Debt Management: NetApp's debt-to-equity ratio surpasses industry norms, standing at 2.85. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for NetApp visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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