NTAP Stock: What to Expect from Earnings Today

NTAP Stock Gaining Ahead of Q4 Results

Shares of Sunnyvale, California-based NetApp, Inc (NTAP) advanced to $25.25 at the close yesterday in New York ahead of the company’s 2016 fiscal-fourth quarter results, due out after today’s closing bell.

Wall Street analysts are on average expecting the storage and data management company to post $1.4 billion in sales during the quarter. While this would show a 0.72% increase from the 3Q16 revenue of $1.39 billion, it would also show a decrease of 9.09% from the same period in Q415. EPS in Q416 are expected to come in at $0.58, a decline rate of about 11% from $0.65 per share a year earlier. Meanwhile, EarningsWhisper.com reports a whisper number of $0.57 per share.

As a quick reminder, NetApp, Inc reported 3Q16 EPS of $0.70, $0.02 better than the Street’s consensus estimate. Revenues fell 10.32% on a YoY basis to $1.39 billion versus the $1.45 billion consensus. Also, the company issued the outlook for the 4Q16, saying it expects revenues in the range of $1.35 billion – $1.50 billion.

The Bottom Line

NTAP shares have advanced 2.81% in the last 4 weeks and 1.57% in the past three months. Over the past 5 trading sessions the stock has gained 6.87%. The $7.37 billion market cap company has a median Street price target of $24.75 with a high target of $40.00.

NetApp Inc. is down 20.58% year-over-year, compared with a 1.34% loss in the S&P 500.

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