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NetApp, Inc. (NTAP), headquartered in San Jose, California, is a data management and storage solution serving a company with diverse industries worldwide. Known for delivering innovative cloud and data services, NetApp empowers businesses to streamline and optimize their data environments with a market cap of $24.7 billion. The company is scheduled to release its Q2 earnings report on Tuesday, Nov. 26.
Ahead of the event, analysts expect NetApp to report a profit of $1.45 per share, up 17.9% from $1.23 in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on one other occasion.
NetApp’s earnings of $1.24 per share for the last reported quarter surpassed the consensus estimate by 7.8%. Its quarterly growth was fueled by solid sales in Hybrid and Public Cloud segments, particularly in cloud storage services, amid challenging IT spending conditions.
For fiscal 2025, analysts expect NetApp to report EPS of $5.71, up 12.9% from $5.06 in fiscal 2024.
NTAP stock is up 37.5% on a YTD, outperforming the broader S&P 500 Index's ($SPX) 22.3% gains and the Technology Select Sector SPDR Fund’s (XLK) 21.2% gain over the same time frame.
NTAP has outperformed the broader sector due to the company’s focus on innovative storage solutions and strong customer relationships. NetApp's strategic partnerships with other tech leaders have also contributed to its success in the market.
However, despite NetApp's solid Q1 earnings release on Aug. 28, where revenue hit $1.54 billion - an 8% year-over-year increase - its stock plummeted 9.6%. The Hybrid Cloud segment led the charge with $1.38 billion, but geopolitical risks and a shaky macroeconomic landscape weighed heavily on the US public sector. Modest growth in the public cloud segment and a 25% drop in operating cash flow added to investor jitters.
The consensus opinion on NTAP stock is moderately bullish, with an overall “Moderate Buy” rating. Of 18 analysts covering the stock, six advise a “Strong Buy” rating, 11 suggest a “Hold,” and one indicates a “Moderate Sell.”
NTAP’s average analyst price target is $133.75, suggesting a potential upside of 10.3% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
