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Earnings Results: NetApp stock falls as earnings forecast comes in under Street view

NetApp Inc. shares dropped in the extended session Wednesday after the cloud-based data-services company’s fourth-quarter earnings forecast fell short of Wall Street expectations.

NetApp
NTAP,
-2.36%

shares fell 7% after hours, following a 2.3% decline in the regular session to close at $84.09.

NetApp forecast earnings of $1.21 to $1.31 a share on revenue of $1.64 billion to $1.74 billion for the fourth quarter, and $5.07 to $5.17 a share on 10% revenue growth, or $6.32 billion, for the year.

Analysts had estimated $1.35 a share on revenue of $1.67 billion for the fourth quarter, and $5.06 a share on revenue of $6.31 billion for the year.

The company reported fiscal third-quarter net income of $252 million, or $1.10 a share, compared with $182 million, or 80 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.44 a share, compared with $1.10 a share in the year-ago period.

Revenue rose to $1.61 billion from $1.47 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast $1.28 a share on revenue of $1.61 billion.

“Q3 results and positive growth outlook are powered by the alignment of our differentiated technology portfolio with customer priorities for cloud and digital transformation,” said George Kurian, NetApp chief executive, in a statement. “Our focused execution and effective management of temporary supply-chain headwinds enable us to capture our expanding opportunity while investing for continued growth and delivering operating leverage.”

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