NetApp's FQ2 Results May Beat Consensus Expectations
Morgan Keegan reiterated its “outperform: rating on NetApp Inc (NASDAQ: NTAP).
The recent checks have indicated that NTAP benefited significantly from robust demand for storage systems. As a result, NTAP may report its Q2 2010 revenues in-line or ahead of the consensus estimates, Morgan Keegan said. Morgan Keegan also expects NTAP to beat the EPS expectations. There is a high possibility of NTAP providing a positive commentary in terms of bookings and backlog entering the January quarter, Morgan Keegan said.
Morgan Keegan expects the strong demand in the midrange of the enterprise market to continue into the January quarter. The recent checks conducted by Morgan Keegan indicated that the supply of several products remain tight, due to which NetApp’s bookings may be higher than the revenues for Q2. As a result, there will be significant visibility into the January quarter, Morgan Keegan added.
