Here's What Key Metrics Tell Us About NetApp (NTAP) Q2 Earnings
For the quarter ended October 2023, NetApp (NTAP) reported revenue of $1.56 billion, down 6.1% over the same period last year. EPS came in at $1.58, compared to $1.48 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.53 billion, representing a surprise of +2.07%. The company delivered an EPS surprise of +12.86%, with the consensus EPS estimate being $1.40.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how NetApp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Gross margin - Product - Non GAAP: 61% versus 55.1% estimated by seven analysts on average.
Total Revenue- Reported: -6% versus -8% estimated by seven analysts on average.
Services gross margin - Non-GAAP: 81.1% compared to the 82.1% average estimate based on six analysts.
Geographic Mix- EMEA: 34% compared to the 31.4% average estimate based on three analysts.
Revenue- Product: $706 million versus $680.66 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -15.7% change.
Net Service revenue: $856 million versus $849.55 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +3.6% change.
Net Revenue- Public Cloud: $154 million compared to the $157.05 million average estimate based on five analysts. The reported number represents a change of +8.5% year over year.
Revenue- Professional and Other Services: $79 million versus the four-analyst average estimate of $79.46 million. The reported number represents a year-over-year change of +2.6%.
Revenue- Support: $623 million compared to the $617.06 million average estimate based on four analysts. The reported number represents a change of +2.6% year over year.
Net Revenue- Hybrid Cloud: $1.41 billion compared to the $1.37 billion average estimate based on four analysts. The reported number represents a change of -7.4% year over year.
Product Revenues- Software: $398 million versus the three-analyst average estimate of $390.72 million. The reported number represents a year-over-year change of -19.6%.
Product Revenues- Hardware: $308 million compared to the $283.42 million average estimate based on three analysts. The reported number represents a change of -9.9% year over year.
View all Key Company Metrics for NetApp here>>>
Shares of NetApp have returned +9.7% over the past month versus the Zacks S&P 500 composite's +10.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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