Will NetApp Return to Revenue Growth in 2017?
Analysts expect NetApp’s revenue to fall in 2017
As we saw earlier in this series, analysts expect storage technology (QQQ) firm NetApp’s (NTAP) revenue to rise 4.3% YoY (year-over-year) in fiscal 4Q17 to $1.44 billion. Analysts also expect revenue to rise 2.8% YoY in fiscal 1Q18 to $1.33 billion.
However, analysts expect the company’s revenue to fall 1.2% YoY in 2017 to $5.48 billion. NetApp’s revenue fell 3.0% YoY to $6.1 billion in 2015 and 9.5% YoY to $5.5 billion in 2016.
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Last year was a volatile one for NetApp in terms of stock performance. The stock rose 35.0% YoY after a disappointing year in 2015 when the stock fell 34.0%. NetApp stock has risen 44% since the firm announced its fiscal 1Q17 results in August 2016.
NetApp expects revenue growth in the second half of 2017
As seen in the above chart, NetApp expects revenue growth in the second half of 2017. NetApp’s revenue rose 1.3% YoY in fiscal 3Q17, and analysts expect revenue to rise 4.3% YoY in fiscal 4Q17.
NetApp expects its all-flash storage portfolio to drive single-digit revenue growth between 2018 and 2020. In comparison, analysts expect NetApp’s revenue to rise 2.1% YoY in fiscal 2018.