NetApp Shares Jump Following Better-Than-Expected Q1 Earnings, Solid Q2 Forecast

Shares of

jumped over 12 percent in after-hours trading after the company reported stronger-than-expected earnings for its fiscal first quarter and issued a strong forecast for the current quarter. The Sunnyvale, California-based company posted a quarterly net loss of $30 million, or $0.10 per share, versus net income of $88 million, or $0.27 per share, in the year-ago period. Excluding items, the company's non-GAAP earnings slipped to $0.29 per share from $0.60 per share. Its net revenue for the first quarter slipped to $1.34 billion from $1.49 billion. However, analysts were expecting earnings of $0.23 per share on revenue of $1.32 billion. The average estimate among 18 Estimize users was for earnings of $0.23 per share and revenue of $1.32 billion. The company ended the quarter with $5.0 billion in total cash, cash equivalents and investments. "The IT industry as a whole is going through fundamental change as enterprises transform themselves with digital capabilities. Data is at the heart of these transformations and where NetApp has a profoundly important role to play with our differentiated vision for data management," said George Kurian, CEO. "Our first fiscal quarter marks the beginning of a new chapter for NetApp. In the next phase of our journey, we are pivoting to better address the changing industry, to improving our own execution and to enhancing value for our shareholders." For the second quarter, the company expects adjusted earnings of $0.55 to $0.60 per share, on revenue of $1.40 billion to $1.50 billion. Analysts projected earnings of $0.46 per share on revenue of $1.39 billion. NetApp shares climbed 12.83 percent to $33.60 in the after-hours trading session.