Earnings Preview: NetApp's EPS, Revenue Expected to Rise
NetApp (NASDAQ: NTAP) unveils its next round of earnings this Wednesday, November 16, 2011. Get the latest predictions in Benzinga's essential guide to the company's second quarter earnings report.
Earnings and Revenue:
Analysts are predicting an EPS reading of 49 cents/share and revenues of $1.53 billion. NetApp's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 43 cents/share on revenues of $1.21 billion. We'll know on Wednesday whether the company has managed the estimated 14% increase in EPS and 26.4% rise in revenues on a year-over-year basis.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 | Q4 | Q3 | Q2 |
| EPS Estimate | $0.46 | $0.44 | $0.41 | $0.39 |
| EPS Actual | $0.44 | $0.47 | $0.42 | $0.43 |
(Estimates Source: Zacks)
Stock Performance:
Shares of NetApp were trading at $41.89 as of November 10, 2011. Since January 1st, shares have declined 23.8%. For a full 12 months, the return has declined by 28.8%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
- Long-term shareholders are already wary of 12-month losses prior to the announcement
Average Stock Rating:
The average rating by analysts is a Moderate Buy. Over the past three months this rating's strength has declined slightly.
Competitors:
Wondering how NetApp compares to rivals in the same sector? Here are a few of the company's peers.
- Brocade Communications Systems (NASDAQ: BRCD): Hold with a $0.05 recent quarter EPS
- EMC (NYSE: EMC): Moderate Buy with a $0.31 recent quarter EPS
- Dot Hill Systems (NASDAQ: HILL): Hold with a -$0.02 recent quarter EPS
The computer-storage development company's industry has seen price/earnings contraction of 0.2% during the current fiscal year.
Finally, a description of the company's main areas of operation: NetApp supplies enterprise storage and data management software and hardware products and services.
Take Action:
There is your peek into NetApp's upcoming earnings numbers, including some competitors to watch around the time of the announcement. Check back in with us after the announcement for a full recap. In the meantime, here are some links to explore today.
- To see up-to-date news on NetApp, click here
- To see other trading ideas, click here
- To see other company earnings recaps, click here
