NetApp Q3 misses, outlook weak

The network data storage provider reported a net income of $177 million, or 56 cents per share.

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NetApp reported its third quarter earnings for the 2015 fiscal year after the bell on Wednesday.

The network data storage provider reported a net income of $177 million, or 56 cents per share (statement).

Non-GAAP earnings were 75 cents per share on a revenue of $1.55 billion.

Wall Street was looking for earnings of 77 cents per share with $1.61 billion in revenue.

As a result, NetApp stock tumbled more than 8 percent in after-hours trading.

Despite the earnings miss, NetApp CEO Tom Georgens kept a positive tone in prepared remarks:

"To position NetApp for success now, and in the future, we remain focused on extending our data fabric vision, a differentiated strategy for the hybrid cloud which allows customers to seamlessly manage their data regardless of where it's stored."

While the quarter came up short of expectations, NetApp did make several gains on the shipment front, with Clustered Data ONTAP nodes shipments climbing 160 percent year-over-year. The company also touted the expansion of its product portfolio with the acquisition of Riverbed Technology's SteelStore product line.

For the current quarter, NetApp followed up with Q4 revenue guidance well below estimates. The company now says it's aiming for revenue between $1.55 billion to $1.65 billion with earnings between 70 to 75 cents per share. Analysts expect earnings of 89 cents per share on revenue of $1.69 billion.

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