NetApp (NTAP) Beat Expectations for Q4

NetApp Inc. (NASDAQ:NTAP) has been around for nearly three decades. It used to provide on-premises computer storage solutions in the start. However, it shifted its focus towards the cloud computing software business with the rise of the internet. Today, it is a leading player in the data management space, offering services to several industries such as energy, healthcare, manufacturing, IT, and finance.

The company recently announced strong financial results for the fourth quarter. NetApp reported earnings of $1.46 per share for the three months ended April 30, well above 88 cents per share in the comparable period of 2020. On an adjusted basis, the company earned $1.17 per share, beating the consensus forecast of $1.12 per share. Revenue for the quarter rose 11 percent on a year-over-year basis to $1.56 billion, topping analysts’ average estimate of $1.5 billion.

CEO George Kurian expressed his satisfaction with the results. He said in a statement, “We delivered fourth quarter results above expectations, capping off a solid year of growth. Our momentum underscores our value to customers in a hybrid, multi-cloud world. We are gaining share in key storage markets and our public cloud services are at a scale where they are positively impacting total company billings and revenue growth. Our focused execution last year has set us up well for FY22. I am excited about the year ahead and confident in our ability to grow revenue while delivering operating leverage as we support our customers on their cloud and digital transformation journeys.”

NetApp also issued its financial outlook for the first quarter. The company is anticipating adjusted earnings in the range of 89 cents per share to 97 cents per share on revenue of $1.37 billion to $1.47 billion. Moreover, the company announced that it plans to buy $500 million worth of its common stock, on top of its existing share buyback program.

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