NetApp beats earnings and revenue estimates
Storage appliance maker NetApp (NTAP) announced its fiscal 1Q18 results on Wednesday, August 16. The company posted its fifth earnings beat in a row, while revenue was in line with projections. The company’s fiscal 1Q18 revenue was $1.3 billion, a 2% increase from the same quarter last year.
The company saw net income of $136 million, or $0.49 per share, in fiscal 1Q18. After excluding the effect of stock-based compensation and other one-time items, NetApp posted earnings of $0.62 per share, a 35% rise from 1Q17. Wall Street had expected earnings of $0.37 per share on revenue of $1.3 billion.
NetApp’s all-flash array revenue growth is supporting company’s revenue
The company said its “all-flash array annualized net revenue run rate grew 95% year-over-year” in fiscal 1Q18. The company expects its all-flash storage portfolio to power at least single-digit revenue growth in the following two fiscal years. Dell EMC was leading the all-flash array market as of calendar 1Q17, followed by NetApp and Hewlett Packard Enterprise (HPE).
Over the last few quarters, the company has been trying to reduce its costs and expand its margins in light of falling revenue. The company’s gross profit margin in fiscal 1Q18 stood at 63.8%, compared with 62.4% in fiscal 1Q17 and 62.5% in fiscal 4Q17. While the company’s stock has risen by 20% in 2017, it fell 1% in after-hours trading on Wednesday.