Data storage and networking company NetApp (NTAP) reported quarterly earnings after the market close Wednesday that beat estimates on the top and bottom line, as did its outlook for the current quarter, but the stock fell.
X NetApp reported revenue of $1.52 billion, beating the consensus estimate of $1.49 billion and up 8% from the year-ago period. It reported adjusted earnings of 99 cents per share, beating the consensus of 91 cents, for its fiscal third quarter ended Jan. 26.
NetApp shares tumbled 8%, near 55.80, during after-market trading on the stock market today. During regular hours, NetApp shares rose 3.2% to close at 60.64.
NetApp forecast fiscal fourth-quarter revenue in a range of $1.525 billion to $1.675 billion. The midpoint of $1.6 billion is above the consensus of $1.56 billion. It projected adjusted earnings in the range of 95 cents to $1.03. The consensus is $1.
IBD’S TAKE: NetApp is fighting to hold above its 50-day moving average but holds an IBD Composite Rating of 95 out of a possible 99, and a Relative Strength Rating of 94. Check out IBD’s Tech Leaders feature to get a broad idea on top tech stocks.
“We saw a solid demand environment and customer momentum, landing wins and footprint expansions with leading organizations in all geographies,” NetApp Chief Executive George Kurian said in prepared remarks with the quarterly results.
It ended the quarter with $5.6 billion in cash and equivalents.
NetApp is a leading provider of data-storage networking and management solutions. The company has undergone a product transition as industry trends move to chip-based flash storage, cloud computing and newer forms of networking.
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