NetApp Exceeds Expectations with Q2 Forecast

## NetApp Exceeds Expectations with Q2 Forecast

Cloud-services provider NetApp Inc. (NTAP) has announced its second-quarter profit and sales forecast, surpassing expectations despite a challenging economic climate. The company is cautiously navigating a market where tech spending is not consistent.

For the second quarter, NetApp forecasts adjusted earnings per share of $1.35 to $1.45, with estimated sales between $1.455 billion and $1.605 billion. Both projections fall above FactSet estimates of $1.38 per share and $1.51 billion in sales.

Despite the positive outlook for Q2, NetApp maintains its full-year adjusted per-share profit forecast at $5.65 to $5.85.

Following the announcement, shares declined by 0.7% after hours.

In its first-quarter report, NetApp revealed a net income of $149 million, equivalent to 69 cents per share. This compares to $214 million, or 96 cents per share, reported during the same period last year. Adjusted earnings per share for Q1 were $1.15.

NetApp’s revenue for the first quarter was $1.43 billion, down from $1.59 billion in the previous year’s quarter. The company exceeded expectations as analysts polled by FactSet anticipated adjusted earnings of $1.07 per share on revenue of $1.41 billion.

Chief Executive George Kurian emphasized that NetApp is focusing on what it can control. He credited the company’s storage business for performing well and highlighted the “substantial innovation” that helps customers build robust and efficient hybrid multicloud infrastructures.

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