NetApp (NASDAQ:NTAP) Updates Q3 Earnings Guidance

NetApp (NASDAQ:NTAP) updated its third quarter earnings guidance on Thursday. The company provided EPS guidance of $1.85-1.95 for the period, compared to the consensus EPS estimate of $1.85. The company issued revenue guidance of $1.61-1.76 billion, compared to the consensus revenue estimate of $1.68 billion. NetApp also updated its FY 2025 guidance to 7.200-7.400 EPS.

NetApp Price Performance

Shares of NASDAQ:NTAP opened at $122.34 on Friday. The company has a debt-to-equity ratio of 1.34, a current ratio of 0.96 and a quick ratio of 0.91. NetApp has a 12 month low of $77.56 and a 12 month high of $135.45. The firm has a market capitalization of $25.05 billion, a P/E ratio of 22.49, a P/E/G ratio of 3.26 and a beta of 1.24. The company’s fifty day moving average price is $121.87 and its 200 day moving average price is $122.49.

NetApp (NASDAQ:NTAP) last released its quarterly earnings results on Thursday, November 21st. The data storage provider reported $1.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.78 by $0.09. NetApp had a return on equity of 119.68% and a net margin of 17.78%. The firm had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.65 billion. During the same quarter last year, the business posted $1.23 EPS. The firm’s quarterly revenue was up 6.1% compared to the same quarter last year. As a group, sell-side analysts predict that NetApp will post 5.71 earnings per share for the current fiscal year.

NetApp Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 22nd. Investors of record on Friday, January 3rd will be paid a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a yield of 1.70%. The ex-dividend date of this dividend is Friday, January 3rd. NetApp’s dividend payout ratio is currently 38.24%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the stock. Evercore ISI increased their target price on shares of NetApp from $120.00 to $130.00 and gave the stock an “in-line” rating in a research note on Monday, August 12th. Oppenheimer started coverage on NetApp in a research report on Wednesday, November 13th. They set a “market perform” rating for the company. Stifel Nicolaus boosted their target price on NetApp from $140.00 to $145.00 and gave the company a “buy” rating in a report on Friday. JPMorgan Chase & Co. increased their price target on NetApp from $146.00 to $147.00 and gave the stock a “neutral” rating in a report on Thursday, August 29th. Finally, Bank of America boosted their price objective on shares of NetApp from $115.00 to $121.00 and gave the company an “underperform” rating in a research note on Friday. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $134.00.

Insider Activity at NetApp

In other NetApp news, EVP Elizabeth M. O’callahan sold 705 shares of the stock in a transaction on Thursday, October 10th. The stock was sold at an average price of $126.20, for a total transaction of $88,971.00. Following the sale, the executive vice president now owns 11,694 shares in the company, valued at approximately $1,475,782.80. This represents a 5.69 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Lorenzo Daniel De sold 1,685 shares of the business’s stock in a transaction dated Tuesday, September 24th. The shares were sold at an average price of $123.60, for a total transaction of $208,266.00. The disclosure for this sale can be found here. Insiders sold 23,049 shares of company stock valued at $2,807,851 in the last ninety days. Corporate insiders own 0.47% of the company’s stock.

About NetApp

NetApp, Inc provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID.