NetApp 1Q profit drops, results beat estimates
Data management software provider NetApp Inc. said Wednesday that its net income fell by more than half in its fiscal first quarter as revenue declined slightly and the cost of sales, marketing and research grew.
Still, the company's shares jumped in after-hours trading as earnings beat Wall Street estimates and its outlook matched analysts' forecasts.
Net income in the three months to July 27 fell to $63.8 million, or 17 cents per share, from $139.5 million, or 34 cents per share, a year ago.
Excluding the cost of paying executives with stock and other items, adjusted earnings came to 42 cents per share, beating the 38 cents expected by analysts polled by FactSet.
Revenue fell about 1 percent to $1.44 billion from $1.46 billion a year ago. Analysts expected $1.46 billion in the recent quarter.
The company expects adjusted earnings of 45 to 50 cents per share on revenue of $1.5 billion to $1.6 billion in the current quarter. Analysts look for 46 cents per share on revenue of $1.54 billion.
Shares rose $1.46, or 4.6 percent, to $33.21 in after-hours trading following the earnings release.