The upcoming report from NetApp (NTAP) is expected to reveal quarterly earnings of $2.07 per share, indicating an increase of 8.4% compared to the year-ago period. Analysts forecast revenues of $1.69 billion, representing an increase of 2.7% year over year.
The current level reflects an upward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
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 a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some NetApp metrics that are commonly tracked and projected by analysts on Wall Street.
According to the collective judgment of analysts, 'Net revenues- Services' should come in at $911.53 million. The estimate indicates a change of +3.2% from the prior-year quarter.
Based on the collective assessment of analysts, 'Net revenues- Product' should arrive at $772.67 million. The estimate indicates a year-over-year change of +1.9%.
The collective assessment of analysts points to an estimated 'Net revenues- Public Cloud' of $178.74 million. The estimate suggests a change of +2.7% year over year.
Analysts forecast 'Net revenues- Hybrid Cloud' to reach $1.50 billion. The estimate indicates a change of +2.2% from the prior-year quarter.
Analysts predict that the 'Net revenues- Support' will reach $633.83 million. The estimate indicates a change of +2.1% from the prior-year quarter.
The consensus estimate for 'Net revenues- Professional and Other Services' stands at $98.02 million. The estimate suggests a change of +11.4% year over year.
It is projected by analysts that the 'Gross margin - Product - Non-GAAP' will reach 59.6%. Compared to the current estimate, the company reported 56.7% in the same quarter of the previous year.
The consensus among analysts is that 'Gross margin - Services - Non-GAAP' will reach 84.0%. The estimate compares to the year-ago value of 82.8%.
Analysts' assessment points toward 'Gross Profit- Products' reaching $465.25 million. Compared to the current estimate, the company reported $430.00 million in the same quarter of the previous year.
The average prediction of analysts places 'Gross Profit- Public Cloud' at $150.94 million. The estimate is in contrast to the year-ago figure of $133.00 million.
The combined assessment of analysts suggests that 'Gross Profit- Professional and Other Services' will likely reach $30.02 million. The estimate is in contrast to the year-ago figure of $25.00 million.
Analysts expect 'Gross Profit- Hybrid Cloud' to come in at $1.08 billion. Compared to the present estimate, the company reported $1.03 billion in the same quarter last year.
View all Key Company Metrics for NetApp here>>>
Shares of NetApp have demonstrated returns of +5.2% over the past month compared to the Zacks S&P 500 composite's +1.8% change. With a Zacks Rank #3 (Hold), NTAP is expected to mirror the overall market performance in the near future. 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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