NetApp cut its outlook for the first quarter citing "increasing uncertainty in the broader macro environment."
According to the storage player, first quarter revenue will be $1.40 billion to $1.50 billion, a decline of 12 percent to 18 percent from the fourth quarter. Non-GAAP earnings will be 34 cents a share to 39 cents a share.
Wall Street was expecting NetApp to report first quarter earnings of 59 cents a share on revenue of $1.6 billion. Given the large miss, it's not surprising that NetApp shares were hammered in afterhours trading, falling 20 percent.
The dismal outlook came as NetApp delivered a solid fourth quarter. The company reported fourth quarter earnings of $181 million, or 47 cents a share, on revenue of $1.7 billion, up 19 percent from a year ago. Fourth quarter non-GAAP earnings were 66 cents a share.
Wall Street was expecting fourth quarter earnings of 63 cents a share on revenue of $1.68 billion.
Although NetApp cited economic conditions, the company is also facing stiff competition from EMC.