NEW YORK, NY / ACCESSWIRE / November 16, 2018 / Broadcom was seeing gains of over 4% on Thursday after announcing the broader deployment of its NVMe hardware RAID solutions with new capabilities. Shares of NetApp were plummeting despite a solid earnings report.
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Broadcom Inc. shares were up 4.48% at the close yesterday with about 3 million shares traded. The company announced the broader deployment of its NVMe hardware RAID solutions with new capabilities. Jas Tremblay, vice president
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NetApp, Inc. shares closed down 11.73% on about 11.7 million shares traded on Thursday compared to an average trading volume of just around 2.5 million shares. Shares of the world's second-biggest provider of standalone enterprise storage systems fell despite reporting second quarter financial results that beat estimates. Not only that, the Company also issued solid guidance. For the quarter, revenue was $1.52 billion and non-GAAP EPS was $1.06. Both topped what analysts had expected at estimates of $1.51 billion and $0.99. The company's product revenue also grew 11% to $913 million while the consensus waited for $905 million. CEO George Kurian said on the earnings call, "Our Q2 revenue was in line with the expectations. Gross margin, operating margin and EPS were all above the high end of our guidance range. Our consistent and strong performance reflects the clear differentiation of our technology and the strength of our business model, as well as our customers' commitment to NetApp and the significance of our Data Fabric strategy." The Company forecast revenue to be in the range of $1.55 billion to $1.65 billion and EPS in the range of $1.12 to $1.18 for the 3rd quarter. While the revenue guidance is in line with street’s estimate of $1.6 billion, EPS guidance is largely above a $1.12 consensus. Traders were probably concerned about the fact that the recent trend of rising gross margins might break in the third quarter as NetApp is selling more of its low-margin hardware products and less of the ultra-profitable support services.
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