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A Look at NetApp’s Revenue and Earnings Growth

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Revenue growth estimated at 5.2% for fiscal 2019

As we’ve learned, analysts expect NetApp’s (NTAP) revenue to rise 7.4% YoY (year-over-year) to $1.42 billion in the fiscal first quarter of 2019. Analysts also expect the company’s revenue to rise 5.8% YoY to $1.51 billion in the fiscal second quarter of 2019 and 5.2% YoY to $6.22 billion in fiscal 2019.

In fiscal 2020, analysts expect NetApp’s revenue to rise ~4.9% YoY to $6.52 billion. The revenue growths of Western Digital (WDC), Seagate (STX), and IBM (IBM) are expected to be -1.2%, 5%, and 1.5%, respectively, in their current fiscal years.

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EPS growth

As we can see in the chart above, NetApp’s sales fell 9.4% YoY to $5.54 billion in fiscal 2016. Its revenue then fell marginally to $5.51 billion in fiscal 2017 and rose over 7% to $5.91 billion in fiscal 2018. NetApp posted EBITDA of $963 million in fiscal 2016, and it rose over 17% to $1.12 billion in fiscal 2017 despite a marginal fall in its revenue.

Driven by revenue growth, NetApp’s EBITDA rose 12.7% to $1.13 billion in fiscal 2018. It’s expected to reach $1.45 billion in fiscal 2019, $1.60 billion in fiscal 2020, and $1.7 billion in fiscal 2021.

Analysts expect NetApp’s non-GAAP (generally accepted accounting principles) EPS to rise 29% YoY to $0.80 in the fiscal first quarter of 2019. In fiscal 2019, its EPS are expected to rise 17.6% YoY to $4.08, while in fiscal 2020, its EPS are expected to rise 15.4% YoY to $4.71.

Analysts expect NetApp’s EPS to grow at a compound annual growth rate of 15% over the next five years compared to its growth rate of 5.50% over the last five years.

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