NetApp Inc

NetApp’s cash-to-debt ratio in 1Q16 was 3.33x—higher than the 1.36x industry median. Its operating income was -$26 million.

In this six-part series, we will go through each one of the positions Elliott traded this past quarter. Elliott Management is a New York based $20 billion+ event driven and distressed hedge fund run by the legendary Paul Singer. The fund is secretive in its approach, but sources attribute a 15% annual net return to […]

NetApp (NTAP) announced its fiscal 4Q17 results on May 24, 2017. Its share price rose 3.4% to $40.96 on May 25.

NetApp (NTAP) has reduced its cost base so far in fiscal 2017 in an effort to offset declining revenues.

Legacy storage vendors like EMC (EMC), IBM (IBM), and NetApp (NTAP) are witnessing a decline in their market share.

Cash-to-debt ratio measures the financial strength of a company. EMC’s cash-to-debt ratio in 2Q15 is 1x, which is lower than the industry median of 1.4x.

Glenview Capital Management is a private investment management firm with more than $7 billion of assets under management. Why buy American Tower Corp. (AMT)?

In fiscal 3Q17, NetApp’s Strategic Solutions business accounted for 65.3% of its net product revenues, and its revenues rose 13% QoQ.

NetApp has stated that it is fully committed to executing its capital allocation programs and to creating value for shareholders.

NetApp CEO George Kurian has stated that the firm will focus on strategic solutions “that represent our pivot to the growth segments of the market.”

NetApp (NTAP) believes that the data fabric is the future for data management.

Hewlett-Packard’s Enterprise Group (EG) revenue was up 1% year over year to $6.9 billion for fiscal first quarter 2014, but operating income for this group declined by 6% to just over $1 billion. In fiscal 2013, EG revenues declined 5.4% to $28.2 billion. EG offers a broad portfolio of enterprise technology infrastructure solutions such as […]

Elliott Management trimmed its position in Delphi Automotive PLC (DLPH) in 1Q 2014. The position accounted for 6.66% of the fund’s 4Q 2013 portfolio and currently stands at 0.36% of the 1Q 2014 portfolio.

By the end of fiscal 3Q17, HPE had returned $107 million to shareholders in the form of dividends and $625 million through share repurchases.

In calendar 2017, Seagate expects to see revenue growth in 80% of its storage product revenues.

In 2013, NetApp (NTAP) introduced its own scale-out storage solution, Clustered Data ONTAP.

In fiscal 3Q16, Seagate reported revenues of $2.6 billion and a gross margin of 20.2%. Its net loss was $21 million, with diluted EPS of -$0.07.

Glenview Capital Management is a private investment management firm with more than $7 billion of assets under management. Why buy Advance Auto Parts Inc. (AAP)?

VMware’s focus on the HCI (hyper-converged infrastructure) space will also benefit the company in the hybrid cloud space.

Elliott Management sold its position in Time Warner Inc. (TWX) in 1Q 2014. The position accounted for 1.17% of the fund’s 4Q 2013 portfolio and was initiated in the same quarter.

Elliott Management has pressured EMC to change its federal structure. However, the firm has agreed to a “standstill agreement” until September 2015.

NetApp’s (NTAP) operating income in fiscal 1Q16 was -2% compared to 10%, 11%, and 4.6% in fiscals 2Q16, 3Q16, and 4Q16, respectively.

The Technology, Hardware, and Storage subsector generated returns of -0.97% in the last week, compared with 0.69% for XLK. As a whole, the subgroup is trending down due to lower demand for computers.

Glenview Capital Management is a private investment management firm with more than $7 billion of assets under management. Why sell Rovi Corporation (ROVI)?

Of the 27 analysts covering storage technology (QQQ) company NetApp (NTAP), 13 gave it a “buy” recommendation, two recommended a “sell,” and 12 recommended a “hold.”

HP (HPQ) stock hasn’t performed remarkably this year. However, the company has been regularly rewarding shareholders.

Hewlett Packard Enterprise has been regularly rewarding shareholders through dividends and buybacks. This week, HPE reported its fiscal 2019 Q4 earnings.

Informatica stock surged 6.8% to $41.04 on news of Elliott’s activist stake, bringing its market capitalization to around $4.5 billion.

HP stock dropped around 2% on Thursday after Goldman Sachs turned bearish on it. Among the 17 analysts covering HP, only one analyst gave it a “buy” rating.

Pure Storage (PSTG), Skyworks Solutions, and Qorvo (QRVO) shares rose in early market trading today. So far, Skyworks has returned 4.6%, respectively.

Several tech stocks declined significantly on September 27, 2019. These declines spooked the market and investors in the second half of Friday.

The Dow continues to trade just below its all-time high. Analysts are watchful as stocks’ valuations rise, making them expensive at their current prices.

Autodesk (ADSK) shares have fallen 12% in pre-market trading on Wednesday. The company reported revenues of $796.8 million—a rise of 30.2% YoY.

When the 10-year Treasury yield dips to 1.6%, where do investors park their funds? You can look at stocks with a high dividend yield as an alternative.

The yield curve inverted yesterday, driving markets down. The DJIA fell 800 points yesterday—its worst performance in 2019—on fears of a looming recession.

Cisco (CSCO) stock fell 8% today after releasing its Q4 results after the market closed yesterday. Cisco reported sales of $13.4 billion, a rise of 6% YoY.

DXC Technology (DXC) was pummeled in early trading after it announced its Q1 results after the market closed on August 8. DXC’s revenue fell 7.4% YoY.

HP (HPQ) generated free cash flow of $747 million in the second quarter of fiscal 2019, while cash flow from operations was $861 million.

HPE spent $154 million to pay a cash dividend of $0.1125 per share in the second quarter of fiscal 2019 as part of the company’s capital return plan of $7 billion through fiscal 2019.

Mainframes, large computers that can process billions of transactions daily, are mostly used by banks, retailers, and airlines.

Nutanix’s (NTNX) share price continues to witness robust growth. In the last year, its stock has soared nearly 115.4%.

VMware (VMW) considers it extremely important to upgrade its product portfolio by investing in R&D (research and development) on a regular basis.

On September 5, VMware (VMW) was trading at a forward price-to-free-cash-flow multiple of ~16.5x.

NetApp (NTAP) stock has returned 96% in the last 12 months, 7.3% in the last month, and 6.5% in the last three months.

NetApp (NTAP) is scheduled to release its results for the fiscal first quarter of 2019 on August 15.

Market research firm International Data Corporation (or IDC) has estimated the worldwide enterprise storage system revenue to grow at 34.4% YoY (year-over-year) to $13 billion.

According to NetApp (NTAP), the data-driven digital transformation seen across industry verticals has accelerated business outcomes.

Hewlett Packard Enterprise (HPE) has been consistently rewarding shareholders with cash dividends and share buyback programs.

Introduced in 2014, NetApp’s (NTAP) Data Fabric solution was primarily based on ONTAP, which is the company’s flagship operating system.

NetApp reported revenues of ~$1.5 billion in fiscal 3Q18, an 8.0% year-over-year increase over its fiscal 3Q17 revenues of $1.4 billion.

Market research company International Data Corporation estimated a rise of 14% year-over-year in sales from total worldwide enterprise storage systems in 3Q17.

In September 2017, Western Digital’s (WDC) brand HGST was named in Gartner’s Magic Quadrant for Distributed File Systems and Object Storage as a niche player.

The worldwide enterprise storage systems market rose 2.9% YoY (year-over-year) in 2Q17 to $10.8 billion, up from $10.5 billion in 2Q16.

Nokia’s current book value per share of ~$3.6 compares with its expected book value per share of ~$3.6. Nokia stock is trading at a price-to-book value of ~1.6x.

In fiscal 3Q17, Western Digital (WDC) reported revenues of $4.6 billion with non-GAAP earnings per share of $2.39.

US-Based (SPY) NetApp (NTAP) has aligned its strategic solutions to meet the IT (information technology) demand of its enterprise customers.

Tech firms Seagate, Western Digital, and NetApp are looking to provide infrastructure and solutions that businesses need to transition to the cloud.

In 2013, US-based (SPY) NetApp (NTAP) introduced Clustered Data ONTAP, its scale-out storage solution.

Storage company NetApp (NTAP) has stated that flash plays a key role in customers’ IT transformations.

SolidFire has created several growth avenues for NetApp (NTAP).

In 2015, the hybrid and private cloud spaces registered 45% growth compared to the 51% growth in the public cloud space.

In fiscal 2Q17, Cisco Systems (CSCO) returned $2.3 billion to its shareholders. This amount included $1 billion in share repurchases and $1.3 billion in dividends.

Last week, Seagate (STX) announced the closure of its manufacturing unit in Suzhou, China (FXI).

Market research firm Gartner named NetApp (NTAP) as the market leader in its Magic Quadrant for solid-state arrays.

HPE returned over $92 million in cash to shareholders in the last fiscal quarter. In fiscal 2016, HPE returned $3 billion in capital to its shareholders.

NetApp’s (NTAP) fiscal 2Q17 gross margin was 62.7%, which was within its guidance range.

NetApp believes that data fabric is the future for data management. The combination of services, connectivity, and endpoints is referred to as a “fabric.”

NetApp has stated that flash storage plays a key role in the IT transformation of businesses. The adoption of flash storage has increased in past quarters.

Storage company NetApp (NTAP) has often stated that flash plays a key role in the IT (information technology) transformation of companies.

US-based (SPY) technology company NetApp (NTAP) will be announcing its fiscal 1Q17 results on August 17, 2016.

Analysts estimate Western Digital to post revenues of $3.44 billion for fiscal 4Q16, with a low estimate of $3.38 billion and a high of $3.47 billion.

Western Digital (WDC) has a market cap of ~$9.1 billion. It rose by 4.6% to close at $44.11 per share on June 28, 2016.

NetApp’s (NTAP) alliance with technology (XLK) heavyweight Microsoft (MSFT) has lasted for over 15 years now.

NetApp, which started as a network-attached storage (or NAS) company, grew exponentially in the dot-com boom.

On Friday, Hewlett-Packard Enterprise (HPE) shares fell 7.6% on news of the United Kingdom deciding to leave the European (FEP)(EFA) Union—the Brexit.

Recently, Seagate Technology (STX) announced its preliminary earnings results and lowered its revenue and margin estimates for fiscal 3Q16.

Cisco sells its UCS (Unified Computing System) products through a joint venture with EMC (EMC) and VMware (VMW). This joint venture is called VCE.

From a purely NAV (net asset value) return standpoint, the Vanguard Capital Opportunity Fund has had a forgettable one-year period until March 18, 2016, as it stood tenth among its peer group.

Of its $12.7 billion revenue reported in fiscal 1Q16, Cisco derived 78% of its revenue, or $9.84 billion, from its wide product portfolio and 22%, or $2.84 billion, from services.

Cisco (CSCO) could beat all of the earnings estimates and provide strong fiscal 1Q16 results. However, its peers in the hardware space reported weaker results.

Macroeconomic factors like the Greek debt crisis, the declining Chinese stock market, and global growth issues have made tech stocks not so attractive.

The benefits provided by the third platform will put early adopters ahead of competition.

In its fiscal 1Q16 earnings release, Symantec announced a $1.5 billion increase in its share buyback program. Symantec paid dividends worth $103 million.

On August 11, Symantec (SYMC) announced its fiscal 1Q16 results. It posted revenue and non-GAAP EPS of $1.5 billion and $0.40 per share, respectively.

On August 11, 2015, Symantec (SYMC) made headlines when The Carlyle Group announced it has agreed to acquire Veritas, Symantec’s information management and data storage business.

Cisco acquired Whiptail—a data storage player—in 2013 for $415 million in order to enter into this market. Cisco plans to shut down its data storage business.

Although SanDisk (SNDK) has declared better-than-estimated 2Q15 results, the company’s revenue fell 24% year-over-year and 7% quarter-over-quarter.

Seagate Technology (STX) is a firm that designs, manufactures, and sells data storage products globally. It was founded in 1979. It’s headquartered in California.

On May 14, 2015, Symantec (SYMC) declared its fiscal 4Q15 and 2015 earnings results. It missed 4Q15 earnings estimates, and the share price went down 3.5%.

In 2014, IBM sold over 2,100 flash storage systems, which translates into 62 PB of capacity. IBM provides an economical storage option that save space, energy, and IT administration costs.

Cisco partners with IBM to leverage the fast-growing integrated infrastructure market. Past partnerships for Cisco have been successful.

On October 27, NetApp announced the acquisition of Riverbed’s SteelStore product line in an all-cash transaction for approximately $80 million.

In 2011, Hewlett-Packard (or HP) (HPQ) launched HP P10000 3PAR Storage Systems, in accordance with its Software defined storage strategy. When it was built, it kept the enterprise-class virtual and cloud-based data centers in mind. This move was achieved through HP’s acquisition of 3PAR—a leading global provider of utility storage—in September 2010 for $2.35 billion.

In July, 2014 EMC announced the VMAX3 TM family. VMAX3 transforms VMAX from an enterprise storage to an open enterprise data service platform. It allows organizations to swiftly shift from on premise infrastructure to an agile data center infrastructure.

According to the IDC, the amount of digital data created, replicated, or consumed is getting doubled every two years. It’s estimated that by 2020, there will be 5,200 gigabytes for every person on earth.

Under “Information Storage,” EMC offers a comprehensive portfolio of enterprise storage systems and software—including high-end storage products EMC VMAX and mid-tier EMC VNX unified storage and a portfolio of backup products for enterprise.

Elliott took a new position in Boyd Gaming Corp. (BYD) last quarter. The position accounts for 1.41% of the fund’s $5.05 billion portfolio.

Elliott Management took a new position in Hornbeck Offshore Services (HOS) last quarter. The position accounts for 0.58% of the fund’s $5.05 billion portfolio.

Glenview Capital Management is a private investment management firm with more than $7 billion of assets under management. Why sell NetApp Inc. (NTAP)?

Glenview Capital Management is a private investment management firm with more than $7 billion of assets under management. Why buy Dollar General Corp. (DG)?