NetApp (NTAP) is tumbling 17% after the company reported slightly lower-than-expected fiscal third-quarter sales and provided full-year earnings per share guidance that came in well below analysts’ average estimate.
NTAP provides data-management software and storage infrastructure solutions.
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The Highlights of NetApp’s Q4 Results and Guidance
NetApp reported that its Q3 sales had risen 2% versus the same period a year earlier to $1.64 billion, below analysts’ average estimate of $1.7 billion. The company’s Q3 earnings per share came in at $1.91, excluding certain items. The latter figure was exactly in line with analysts’ mean estimate.
However, NTAP provided full-year EPS guidance of $7.17 to $7.27, well below the mean estimate of $7.90.
NTAP’s Comments
Calling NTAP’s Q3 revenue “below our standards,” CEO George Kurian said in a statement that “We are taking action to enhance our execution and improve our momentum.” However, he added that “I remain confident in our position as the supplier of choice for AI and other data-driven workloads and our ability to achieve our long-term financial goals and deliver increasing shareholder value.”
The Recent Price Action of NTAP Stock
In the last month, the shares have dropped 19%, while they have fallen 15% so far this year.
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Disclosure: None. This article is originally published at Insider Monkey.