NetApp Q3 results fall below expectations
NetApp missed analyst targets for its fiscal third quarter and projects a 10% revenue decline for full year 2020.
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The storage vendor reported third quarter net income of $277 million, or $1.21 a share, on revenue of $1.4 billion. Non-GAAP earnings were $1.16 a share. Wall Street was looking for third quarter non-GAAP earnings of $1.18 a share on revenue of $1.46 billion.
In terms of outlook, NetApp's EPS guidance for the current quarter fell below expectations and the company's shares tumbled more than 11% in after hours trading.
For the fourth quarter, NetApp said it expects non-GAAP earnings per share between $1.28 and $1.36 and revenue in the range of $1.455 billion and $1.605 billion. Wall Street was predicting non-GAAP EPS of $1.39 on $1.57 billion of revenue.
For the year, analysts are looking for NetApp to deliver earnings of $4.30 per share on revenue of $5.64 billion. NetApp said revenues are expected to decline approximately 10% year-over-year.
"We see significant opportunity ahead and are focused on replicating the areas where we have proven success," said NetApp CEO George Kurian. "Our strong business model enables us to navigate the market dynamics, while making the strategic investments necessary to position the company for long-term growth."
NetApp also announced Wednesday that finance chief Ron Pasek is planning to retire at the end of the fiscal year. He's served as the company's CFO since 2016.