NetApp beats Q1 targets as new CEO settles in

NetApp replaced Tom Georgens as CEO following last quarter's dismal earnings report. His replacement George Kurian calls the improved Q1 "a new chapter for NetApp."

NetApp reported its first quarter earnings for the 2016 fiscal year after the bell on Wednesday.

The network data storage provider reported a net loss of $30 million, or 10 cents per share (statement).

Non-GAAP earnings were 29 cents per share on revenue of $1.34 billion.

Wall Street was looking for earnings of 23 cents per share with $1.32 billion in revenue.

While the numbers line up slightly above analyst estimates, its mainly due to NetApp chopping its guidance sharply during its fourth quarter earnings report in May. Analyst consensus for Q1 was originally 60 cents a share on $1.46 billion in revenue.

Still, the better-than-expected results sent NetApp's share price soaring 13 percent in after market trading.

In June NetApp announced the departure of CEO Tom Georgens as the company faced mounting competition for customers amid the shifting storage market. The Sunnyvale, Calif.-based corporation replaced Georgens with company insider George Kurian.

Kurian had been NetApp's executive vice president of product operations overseeing strategy and the roadmap for the storage company. Kurian was also added to NetApp's board of directors.

"Our first fiscal quarter marks the beginning of a new chapter for NetApp," Kurian said in prepared remarks. "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."

Looking to the current fiscal quarter, NetApp said it expects earnings of 55 cents to 60 cents per share and revenue from $1.4 billion to $1.5 billion. Analysts expect the company to report earnings of 46 cents per share on revenue of $1.39 billion.