U.S. Markets open in 1 hr 9 mins

NetApp's Stock Tumbles Post-Earnings; CEO Makes His Case to TheStreet

Eric Jhonsa

shares were plummeting on Thursday after the storage hardware and software giant shared disappointing results and quarterly guidance that were blamed on several factors. At the same time, NetApp did issue a somewhat better full-year outlook -- an outlook that its CEO says is attainable with the help of sales team changes and larger contributions from high-growth businesses. On Wednesday afternoon, NetApp reported April quarter (fiscal fourth quarter) revenue of $1.59 billion (up 4% annually) and non-GAAP EPS of $1.22, missing consensus analyst estimates of $1.64 billion and $1.26, respectively. For the whole of fiscal 2020 (it ends in April 2020), NetApp is guiding for revenue to grow at the low end of "[a] mid-single-digit range." In addition, CFO Ron Pasek said on NetApp's earnings call that the company is "committed to delivering low-teens EPS growth" before accounting for the impact of new stock buybacks, and that it has recently "conducted workforce realignments." Relative to the company's reported fiscal 2019 numbers, pre-earnings consensus estimates implied 4% revenue growth and 11% EPS growth.