NetApp (NASDAQ: NTAP) Surges 11% on Stellar Q2 Results, Beats Estimates Amid Revenue Dip

NetApp (NASDAQ: NTAP) Surges 11% on Stellar Q2 Results, Beats Estimates Amid Revenue Dip

NetApp (NASDAQ: NTAP) shares surged more than 11% in after-hours trading following the company’s Q2 results. The earnings per share (EPS) of $1.58 surpassed the consensus estimate of $1.39, triggering this notable rise.

Despite a 6% year-over-year decline in revenue (down 8% in constant currency) to $1.56 billion, it outperformed the consensus estimate of $1.53 billion. However, billings took a hit, dropping by 9% year-over-year to $1.45 billion.

CEO George Kurian expressed satisfaction, stating, “We delivered another strong quarter, with revenue above the midpoint of our guidance and all-time highs for gross margins, operating margins, and EPS.”

Looking ahead to Q3/24, the company projects an EPS range of $1.64 to $1.74, exceeding the consensus estimate of $1.53. Revenue expectations for this period fall between $1.51 billion and $1.67 billion, compared to the consensus of $1.555 billion.

For the full year, NetApp revised its outlook, now anticipating EPS in the range of $6.05 to $6.25, surpassing the consensus estimate of $5.73. However, the company foresees a roughly 2% year-over-year decline in revenues.

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