NetApp Shares Move Higher After Q1 Earnings Beat

NetApp Inc. NTAP shares are higher after posting a first-quarter earnings beat.

Adjusted earnings came in at 65 cents per share, beating estimates by 4 cents. Sales came in at $1.236 billion, missing estimates by $4 million. The company issued strong second-quarter earnings guidance.

"The gross margin and cost structure improvements we've made provide support for our free cash flow generation and enable us to navigate the ongoing macroeconomic headwinds while making the strategic moves that position us well to return to growth," said CEO George Kurian. "We consistently receive positive feedback from our customers and partners on the value of our Data Fabric strategy and the strong performance of our best teams demonstrates our ability to capitalize on this strength."

Highlights

• Cloud Data Services ARR increased 189% year-over-year
• $365 million returned to shareholders

NetApp shares traded higher by 5% to $46.95 in the after-hours session. The stock closed the regular session down 4.8% at $44.71 per share.