NetApp Inc. Shares Plummet After Below Expectations Guidance

NetApp Inc. shares fell 14% after a disappointing fiscal outlook. The company's Q4 EPS guidance and fiscal year projections fell short of analyst expectations, foreshadowing potential challenges ahead.

Date: 28-02-2025

AI Rating: 4

Earnings Per Share (EPS)
NetApp anticipates earnings per share between $1.45 and $1.55 for Q4, which is significantly below analyst projections of $1.99. For fiscal 2025, expected EPS ranges from $5.49 to $5.59, underperforming the $7.33 forecast by analysts.

Net Income
The reported net income for the third quarter is down to $299 million, compared to $313 million in the same quarter last year, indicating a decline in profitability.

Revenue Growth
Third-quarter revenues slightly increased by 2% to $1.64 billion. However, this minimal growth may not be sufficient to reassure investors given the overall poor guidance.

Overall Impact
The adjustments in earnings guidance and the reported decline in net income signal challenges for NetApp, particularly as they face increasing costs that are affecting profitability. The negative outlook could lead to continued stock price declines as investor confidence wanes.

Stocks: NTAP