Earnings Insight - NetApp

LONDON, December 5, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings insight on NetApp Inc. (NASDAQ: NTAP). On November 12, 2014, the company reported its financial results for Q2 FY15 (period ended October 24, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on NetApp Inc. (NetApp). In Q2 FY15, the company reported net revenues of $1.54 billion, while it's diluted EPS increased $0.01 from Q2 FY14. The chairman and CEO of NetApp, Tom Georgens, stated that he is pleased with NetApp's performance in Q2 FY15 with revenue and non-GAAP EPS coming in above the mid-point of the company's guidance range. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

For Q2 FY15, NetApp's net revenues decreased by $7.4 million from $1,549.9 million reported in Q2 FY14. Analysts from Bloomberg had expected the company to report net revenues of $1,548.0 million in Q2 FY15. Net App's revenues from its product segment fell by $26.2 million Y-O-Y, while revenue from its software entitlements and maintenance segment, declined by $7.6 million from Q2 FY14. Meanwhile, revenues from the company's services segment increased $26.4 million from Q2 FY14. The free research on NTAP can be downloaded as in PDF format at:

http://www.Investor-Edge.com/NTAPFreeReport

NetApp's income from operations for the reported quarter increased to $192.5 million from $186.9 million in Q2 FY14. The company's GAAP net income for Q2 FY15 stood at $159.8 million, or $0.49 per diluted share, compared to $166.8 million, or $0.48 per diluted share, in Q2 FY14. The company's reported net income missed Bloomberg analysts' forecasts of $160.3 million, or $0.50 per share. Further, NetApp's Q2 FY15 non-GAAP net income stood at $226.4 million, or $0.70 per diluted share, compared to $231.5 million, or $0.66 per diluted share, in Q2 FY14.

NetApp ended Q2 FY15 with $5.27 billion of total cash, cash equivalents and investments and generated $381 million in cash from operations during the reported quarter. 

For Q2 FY15, NetApp saw shipment for its Clustered Data ONTAP^® nodes tripled on a Y-o-Y basis, while flash capacity shipped doubled Y-o-Y. Mr. Georgens informed that NetApp has dramatically expanded its portfolio at an unprecedented pace. He added that NetApp's best of breed solutions not only solve the challenges enterprises face today, but ensure a seamless path to the hybrid cloud that enables customers to effectively manage their data across multiple cloud resources. Sign up and read the free analyst's notes on NTAP at:

http://www.Investor-Edge.com/NTAP-05122014

During Q2 FY15, NetApp paid a cash dividend of $0.165 per share, compared to $0.150 per share in Q2 FY14, and returned a total of $652 million to its shareholders in the form of share repurchases and cash dividends. The company will pay its next dividend for the amount of $0.165 per share on January 22, 2015, to shareholders of record as of close of business on January 9, 2015.

For Q3 FY15, NetApp expects its net revenues to be in the range of $1.56 billion to $1.66 billion, GAAP earnings are expected to be in the range of $0.52 to $0.57 per share, and Non-GAAP earnings are anticipated to be in the range of $0.74 to $0.79 per share. Visit Investor-Edge and access the latest research on NTAP at:

http://www.Investor-Edge.com/NTAPEarningsCoverage

Stock Performance  

On the day following the earnings release, November 13, 2014, NetApp's stock ended the session at $41.09, down 2.90%. Since then, shares of the company have witnessed a mixed momentum. On the last close, Thursday, December 4, 2014, the stock finished at $43.29, 0.35% above its previous day's closing price of $43.14, after vacillating between $42.81 and $43.30. A total of 2.09 million shares were traded, which was below its three months average volume of 2.91 million shares. Over the last three trading sessions and the previous three months, the company's shares have gained 3.12% and 3.29%, respectively. Further, the stock has advanced 5.23% on YTD basis. Shares in NetApp's closed above their 50-day and 200-day moving averages of $41.40 and $38.75, respectively. Furthermore, the stock traded at a PE ratio of 21.52 and has a Relative Strength Index (RSI) of 59.81.

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 10 insider transactions made by 4 individuals. Between November 18, 2014 and November 25, 2014, a total of 172,000 shares have been purchased at an average price of $28.72 per share, for a total value of $4,939,157. During the stated period, a total of 187,066 shares, worth $7,912,837, were disposed at an average price of $42.30 per share. On November 18, 2014, Michael Nevens, Director at NetApp, purchased a total of 72,000 shares at an average price of $33.99 per share and on the same day, he disposed an equal number of shares at $42.04 per share. On November 21, 2014, Mr. Georgens purchased 100,000 shares at an average price of $24.92 per share, while on the same day he disposed an equal number of shares at $42.38 per share. On November 24, 2014, Jeffry R. Allen, director at NetApp, sold 3,333 shares at $42.60 per share. On November 25, 2014, Matthew K. Fawcett, Senior Vice President, General Counsel, and Secretary at NetApp, disposed 11,733 shares at $43.10 per share. Complimentary in-depth research on NTAP is available at:

http://www.Investor-Edge.com/NTAPInsiderTrading

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