Ahead of NetApp (NTAP) Q2 Earnings: Get Ready With Wall Street Estimates for Key Metrics
Wall Street analysts forecast that NetApp (NTAP) will report quarterly earnings of $1.40 per share in its upcoming release, pointing to a year-over-year decline of 5.4%. It is anticipated that revenues will amount to $1.53 billion, exhibiting a decline of 8% compared to the year-ago quarter.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some NetApp metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Revenue- Product' reaching $680.66 million. The estimate points to a change of -18.7% from the year-ago quarter.
Analysts forecast 'Net Service revenue' to reach $849.55 million. The estimate indicates a change of +2.9% from the prior-year quarter.
The consensus among analysts is that 'Net Revenue- Public Cloud' will reach $157.05 million. The estimate points to a change of +10.6% from the year-ago quarter.
It is projected by analysts that the 'Revenue- Professional and Other Services' will reach $79.46 million. The estimate indicates a year-over-year change of +3.2%.
The consensus estimate for 'Revenue- Support' stands at $617.06 million. The estimate indicates a change of +1.7% from the prior-year quarter.
The average prediction of analysts places 'Net Revenue- Hybrid Cloud' at $1.37 billion. The estimate indicates a year-over-year change of -9.7%.
The combined assessment of analysts suggests that 'Product Revenues- Software' will likely reach $390.72 million. The estimate indicates a change of -21.1% from the prior-year quarter.
According to the collective judgment of analysts, 'Product Revenues- Hardware' should come in at $283.42 million. The estimate indicates a change of -17.1% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Total Revenue- Reported' of -8.0%. Compared to the present estimate, the company reported 6% in the same quarter last year.
Based on the collective assessment of analysts, 'Gross margin - Product - Non GAAP' should arrive at 55.1%. The estimate is in contrast to the year-ago figure of 50.2%.
Analysts predict that the 'Product- Reported' will reach -19.5%. Compared to the current estimate, the company reported 3% in the same quarter of the previous year.
Analysts expect 'Gross Profit- Products' to come in at $375.70 million. Compared to the current estimate, the company reported $420 million in the same quarter of the previous year.
View all Key Company Metrics for NetApp here>>>
Shares of NetApp have demonstrated returns of +7.6% over the past month compared to the Zacks S&P 500 composite's +8% change. With a Zacks Rank #3 (Hold), NTAP is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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