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What Do Analysts Expect from NetApp in Fiscal 1Q17?

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NetApp’s fiscal 1Q17 earnings

US-based (SPY) technology company NetApp (NTAP) will be announcing its fiscal 1Q17 results on August 17, 2016. Analysts estimate that the company will post revenue of $1.26 billion, with a low estimate of $1.20 billion and a high estimate of $1.29 billion.

Even if NetApp meets revenue expectations of $1.26 billion in fiscal 1Q17, it will still mean a fall of 5.9% YoY (year-over-year). The company’s earnings per share (or EPS) are expected to be $0.36, with a high estimate of $0.39 and a low estimate of $0.34.

As shown in the above chart, NetApp beat analysts’ consensus EPS estimate by 26.1% in 1Q16, when the company announced EPS of $0.29. NetApp also beat analyst EPS estimates in fiscal 2Q16 and fiscal 3Q16 by 7% and 2.9%, respectively.

NetApp has a market cap of $7.4 billion. In comparison, peer companies Hewlett-Packard Enterprise (HPE), Cisco (CSCO), and IBM (IBM) have market caps of $37.5 billion, $155 billion, and $154 billion, respectively.

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How did NetApp perform in fiscal 4Q16 and fiscal 2016?

NetApp announced its fiscal 4Q16 and fiscal 2016 results a few weeks ago. The company achieved its margin and EPS targets. Its revenue rose by 3.8% YoY in fiscal 4Q16, but it fell 9.4% YoY in fiscal 2016.

The company’s net profit also fell by 22% YoY in fiscal 4Q16. These results reflected the impact of an uncertain and volatile macroeconomic environment, which caused a slowdown in spending.

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