Group 1 - NetApp is expected to announce its fiscal fourth-quarter earnings on May 29, 2025, with anticipated earnings of $1.90 per share and revenue of $1.72 billion, reflecting a 35% year-over-year increase in earnings and a 3% rise in sales compared to the previous year [1] - The company forecasts full-year 2025 revenue between $6.49 billion and $6.64 billion, with a non-GAAP operating margin of approximately 28%-28.5%, leading to an adjusted EPS expectation of $7.17 to $7.27 [2] - NetApp's current market capitalization is $20 billion, with past twelve months revenue recorded at $6.5 billion, operational profitability of $1.4 billion in operating profits, and a net income of $1.1 billion [2] Group 2 - Historical data indicates that NTAP stock has risen 63% of the time following earnings announcements, with a median one-day increase of 4.4% and a maximum observed jump of 18% [1][4] - Over the last five years, there have been 19 earnings data points for NTAP, with 12 positive and 7 negative one-day returns, resulting in positive returns approximately 63% of the time [5] - The correlation between short-term and medium-term returns post-earnings can provide a strategy for traders, particularly if the 1D and 5D returns demonstrate a strong correlation [4][5]

Core Viewpoint - NetApp, Inc. is expected to report its fourth-quarter fiscal 2025 earnings on May 29, with anticipated non-GAAP earnings per share between $1.84 and $1.94, and net revenues between $1.65 billion and $1.8 billion, reflecting a year-over-year increase [1][2] Financial Performance - The Zacks Consensus Estimate for earnings per share is $1.89, indicating a 5% rise from the previous year, while net revenues are estimated at $1.73 billion, implying a 3.4% increase from the prior year [1] - NetApp has beaten estimates in two of the last four quarters, with an average earnings surprise of 2.8% [2] Product and Market Dynamics - Strong demand for NetApp's modern all-flash arrays, particularly the C-series and ASA block-optimized flash, is expected to positively impact revenue [2] - The launch of new entry-level and midrange ASA systems is anticipated to enhance market penetration in the all-flash segment [3] - Keystone's storage-as-a-service offering has seen nearly 60% year-over-year revenue growth in the last reported quarter [3] Segment Performance - Hybrid Cloud revenues are estimated at $1.5 billion, reflecting a 2.2% increase from the previous year [4] - Public Cloud revenues are projected at $175.6 million, up 15.6% year-over-year, driven by a 40% increase in first-party and marketplace cloud storage services [5] Challenges and Outlook - The fiscal fourth-quarter outlook has been revised due to the Spot divestiture, a strong U.S. dollar, and global public sector weakness [6] - Uncertain macroeconomic conditions and cautious IT spending are expected to pose challenges [6]

Core Viewpoint - JP Morgan analyst Samik Chatterjee anticipates conservative earnings results for several hardware companies due to ongoing demand uncertainty and renewed tariff risks [1][2] Group 1: Company-Specific Insights - Dell Technologies Inc. is expected to benefit from AI spending and a stronger-than-expected AI market share, leading to an Overweight rating and a price forecast increase from $108 to $111 [5][4] - Hewlett Packard Enterprise Company is viewed as well-positioned for upcoming earnings, with projected revenue of $32.4 billion, reflecting an 8% year-over-year growth, and gross margins at 28.7% [9][8] - HP Inc. is anticipated to post solid second-quarter results due to strong PC demand, with a price forecast increase from $29 to $30, despite facing higher tariffs and uncertainty in future PC demand [11][10] - NetApp, Inc. is expected to see stable demand with a slight revenue beat in F4Q25E, but FY26 revenue growth is projected to be in the low-to-mid single digits due to a muted macro environment [12][13] Group 2: Market Trends and Economic Factors - The analyst notes that macroeconomic trends will significantly impact HPQ and HPE throughout the year, with NTAP showing resilience but limited revenue upside [5][6] - The upcoming earnings reports are likely to reflect management's strategies to mitigate risks for the second half of the year, especially after stronger-than-expected performances in the first half [2][3] - The tariff landscape remains a key concern, with expectations that it will affect second-quarter guidance and fiscal 2026 outlooks [6][7]

Core Viewpoint - NetApp (NTAP) is expected to report quarterly earnings of $1.89 per share, reflecting a 5% increase year-over-year, with revenues projected at $1.73 billion, a 3.4% increase from the previous year [1]. Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2]. Key Metrics Overview - Analysts project 'Net revenues- Services' to reach $893.66 million, indicating a 3.7% increase year-over-year [4]. - 'Net revenues- Product' is expected to be $831.32 million, reflecting a 3.1% increase from the previous year [4]. - 'Net revenues- Public Cloud' is forecasted at $169.80 million, showing an 11.7% increase year-over-year [4]. - 'Net revenues- Hybrid Cloud' is anticipated to reach $1.56 billion, a 2.6% increase from the previous year [5]. - 'Geographic Revenue- United States, Canada and Latin America' is projected at $877.61 million, a 3.5% increase year-over-year [5]. - 'Geographic Revenue- Asia Pacific' is expected to be $262.60 million, reflecting a 3.4% increase from the previous year [5]. - 'Geographic Revenue- Europe, Middle East and Africa' is estimated at $583.11 million, indicating a 3% increase year-over-year [6]. Margin and Revenue Changes - 'Gross margin - Product - Non-GAAP' is expected to be 56.2%, down from 61.3% in the same quarter last year [6]. - 'Gross margin - Services - Non-GAAP' is projected at 82.0%, compared to 81% in the previous year [7]. - Total Revenue is expected to change by 3.3%, down from 6% in the same quarter last year [7]. - 'Geographic Mix - Asia Pacific' is estimated at 15.2%, slightly up from 15% year-over-year [7]. - 'Geographic Mix - Americas' is projected at 50.9%, down from 51% in the same quarter last year [8]. Stock Performance - NetApp shares have increased by 13.2% over the past month, outperforming the Zacks S&P 500 composite, which rose by 10.7% [8].

Company Performance - NetApp (NTAP) closed at $93.09, reflecting a +0.82% change from the previous session, outperforming the S&P 500's loss of 0.64% [1] - The stock has increased by 21.33% over the past month, surpassing the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 0.38% [1] Earnings Forecast - NetApp is expected to report an EPS of $1.89, indicating a 5% increase from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $1.73 billion, up 3.42% from the previous year [2] Analyst Estimates - Recent changes to analyst estimates for NetApp reflect shifting short-term business dynamics, with positive revisions indicating analyst optimism about the company's profitability [3] - The Zacks Rank system, which incorporates these estimate changes, currently ranks NetApp at 3 (Hold) [5] Valuation Metrics - NetApp has a Forward P/E ratio of 11.93, aligning with the industry average [6] - The company has a PEG ratio of 1.39, compared to the industry average of 1.66 [7] Industry Context - The Computer-Storage Devices industry, part of the Computer and Technology sector, ranks 162 out of over 250 industries, placing it in the bottom 35% [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - NetApp's stock price closed at $82.45, reflecting a +0.94% change, which lagged behind the S&P 500's gain of 2.51% [1] - Over the past month, NetApp shares have decreased by 14.13%, underperforming the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 8.86% [1] Earnings Performance - NetApp is expected to report an EPS of $1.89, representing a 5% increase from the same quarter last year [2] - Revenue is forecasted at $1.73 billion, indicating a 3.45% increase compared to the previous year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $7.23 per share, reflecting an 11.92% increase, and revenue is expected to be $6.57 billion, showing a 4.75% increase from the prior year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for NetApp are crucial as they reflect short-term business trends and can indicate analysts' positive outlook on the company's health and profitability [4] Stock Price Performance Link - Estimate alterations are linked to stock price performance, and the Zacks Rank system incorporates these changes to provide a rating system [5] Zacks Rank - The Zacks Rank ranges from 1 (Strong Buy) to 5 (Strong Sell), with a historical average annual return of +25% for stocks rated 1 since 1988 [6] - Currently, NetApp holds a Zacks Rank of 3 (Hold) [6] Valuation Metrics - NetApp has a Forward P/E ratio of 11.3, which is in line with its industry's Forward P/E of 11.3 [7] - The PEG ratio for NetApp is 1.32, compared to the industry average of 1.39 [7] Industry Ranking - The Computer-Storage Devices industry ranks in the top 14% of all industries, with a current Zacks Industry Rank of 33 [8] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - NetApp, Inc. has experienced a significant decline in stock price due to disappointing guidance, which has not met Wall Street expectations [1] Company Analysis - NetApp is recognized as one of the leading storage infrastructure providers globally [1] - The company is undergoing strategic changes that may present long-term growth potential at a reasonable price [1] Investment Perspective - The focus is on companies like NetApp that are undergoing strategic changes, as these can lead to a correction in stock value towards its intrinsic worth [1] - The belief is that such strategic changes can offer investors high returns due to existing misconceptions and uncertainties surrounding the stock [1]

Super Micro Computer (SMCI) and NetApp (NTAP) are both leading the Infrastructure as a Service (IaaS) space, providing organizations with essential building blocks to run their operations, but in very different ways. While Super Micro Computer provides server-based solutions and enables organizations with high computing capability, NetApp equips organizations with storage infrastructure.Per a report by Fortune Business Insights, the IaaS market, which accounts for computing, network and storage verticals, i ...

Core Viewpoint - NetApp's stock price surged by 13.1% to close at $86.10, following a significant trading volume and a recent announcement from President Trump regarding a 90-day pause on tariffs with China, which positively impacted market indices and stocks, including NetApp [1][2]. Group 1: Company Performance - The increase in NetApp's share price is linked to the announcement of new capabilities for Google Cloud NetApp Volumes, which enhance performance and reduce complexity for cloud storage workloads, particularly in AI and electronic design automation [2]. - In the fiscal third quarter of 2025, NetApp secured over 100 deals related to AI and data lake modernization, indicating strong demand in its flash business and public cloud segment [3]. - The company is collaborating with major industry players to develop GenAI cloud and on-premises solutions, further expanding its market opportunities [3]. Group 2: Financial Expectations - NetApp is projected to report quarterly earnings of $1.89 per share, reflecting a year-over-year increase of 5%, with revenues expected to reach $1.73 billion, up 3.5% from the previous year [4]. - Despite the positive earnings and revenue growth expectations, the consensus EPS estimate has been slightly revised lower over the past month, which may impact future stock price movements [5]. Group 3: Industry Context - NetApp operates within the Zacks Computer-Storage Devices industry, where another company, Netlist, has seen its stock rise by 8.5% recently, although it has a negative return of -7.9% over the past month [5]. - Netlist's consensus EPS estimate remains unchanged at -$0.02, showing a year-over-year change of +71.4%, but it currently holds a Zacks Rank of 4 (Sell) [6].

Core Insights - NetApp, Inc. has partnered with Alphabet Inc. to enhance Google Cloud NetApp Volumes, a fully managed file storage service, significantly improving performance and reducing complexity for cloud storage workloads, particularly in AI, EDA, and large content repositories [1][2][3] Group 1: Partnership and Product Enhancements - The collaboration between NetApp and Google Cloud showcases the integration of NetApp's intelligent data infrastructure with Google Cloud's scalable AI and storage ecosystem, leading to a 13.08% increase in NTAP's shares following the announcement [2][3] - New features include integration with Google Cloud's Vertex AI platform, allowing customers to access data in NetApp Volumes directly within Vertex AI, facilitating faster development of custom AI agents and applications [5] - Google Cloud NetApp Volumes now supports large capacity volumes starting at 15TiB, scaling up to 1PiB with throughput of up to 30 GiB/s, which simplifies the movement of large datasets to the cloud [6] Group 2: Flexibility and Scalability - The introduction of Flex Service Level improvements allows customers to independently scale capacity, throughput, and IOPS, enabling tailored storage solutions that meet specific workload requirements [7] - Upcoming support for Google Cloud's Assured Workloads will help organizations maintain compliance with regional standards while ensuring data residency and access control [8] Group 3: Market Demand and Growth - NetApp is experiencing increased demand for its all-flash arrays and cloud storage solutions, with over 100 deals focused on AI and modernizing data lakes secured in the fiscal third quarter [9][10] - The company is actively developing generative AI solutions and has previously collaborated with Google Cloud to enhance AI-ready infrastructure for the public sector and regulated industries [11] Group 4: Financial Performance and Challenges - Despite the positive developments, NetApp faces challenges such as foreign exchange pressures, the impact of the Spot divestiture, and competition, which may affect revenue growth in the near term [12] - NTAP's stock has seen an 18% decline over the past year, contrasting with the broader industry's decline of 44.9% [13]