NetApp Inc. (NASDAQ: NTAP) was all the buzz during the tech M&A boom of late-Summer. The storage giant reported that its profit gained over 70%, beating estimates. Non-GAAP earnings were $0.52 EPS and revenue was $1.21 billion versus prior guidance of $0.47 to $0.50 EPS on $1.16 billion to $1.21 billion in sales.
That is where the trend ends. Gross margin fell to 66.3% from 66.7% as product sales were up 49%, software rose almost 5% and services rose 16%.
Guidance was $0.48 to $0.50 EPS on revenues of $1.24 to $1.29 billion. The problem is that Thomson Reuters was showing consensus estimates of $0.51 EPS and $1.26 billion in revenues.
Shares traded down about 6.5% to $49.25 before a quick halt since the release came before the close of the day. Shares have just re-opened and the after-hours session has shares trading up around $49.90 to $50.00 initially.
JON C. OGG
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