In its upcoming report, NetApp (NTAP) is predicted by Wall Street analysts to post quarterly earnings of $1.89 per share, reflecting an increase of 1.1% compared to the same period last year. Revenues are forecasted to be $1.69 billion, representing a year-over-year increase of 1.7%.
Over the last 30 days, there has been a downward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain NetApp metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts' assessment points toward 'Net revenues- Services' reaching $916.66 million. The estimate suggests a change of +3% year over year.
Analysts expect 'Net revenues- Product' to come in at $769.67 million. The estimate indicates a change of +0.2% from the prior-year quarter.
The consensus estimate for 'Net revenues- Public Cloud' stands at $174.80 million. The estimate suggests a change of +4.1% year over year.
Based on the collective assessment of analysts, 'Net revenues- Hybrid Cloud' should arrive at $1.52 billion. The estimate indicates a year-over-year change of +1.7%.
It is projected by analysts that the 'Geographic Revenue- United States, Canada and Latin America' will reach $862.89 million. The estimate suggests a change of +0.1% year over year.
According to the collective judgment of analysts, 'Geographic Revenue- Asia Pacific' should come in at $274.62 million. The estimate suggests a change of +8.6% year over year.
The average prediction of analysts places 'Geographic Revenue- Europe, Middle East and Africa' at $551.06 million. The estimate suggests a change of +1.5% year over year.
Analysts predict that the 'Gross margin - Product - Non-GAAP' will reach 56.5%. Compared to the current estimate, the company reported 60.3% in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Gross margin - Services - Non-GAAP' of 83.3%. Compared to the current estimate, the company reported 82.1% in the same quarter of the previous year.
The consensus among analysts is that 'Product - % Change' will reach 0.6%. The estimate compares to the year-ago value of 9.0%.
Analysts forecast 'Total Revenue - % Change' to reach 1.9%. Compared to the present estimate, the company reported 6.0% in the same quarter last year.
The combined assessment of analysts suggests that 'Geographic Mix - Americas - U.S. Public Sector' will likely reach 9.1%. Compared to the current estimate, the company reported 14.0% in the same quarter of the previous year.
View all Key Company Metrics for NetApp here>>>
NetApp shares have witnessed a change of -9% in the past month, in contrast to the Zacks S&P 500 composite's -0.3% move. With a Zacks Rank #4 (Sell), NTAP is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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NetApp, Inc. (NTAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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