Data storage solutions provider NetApp Inc. (NTAP), said Wednesday its fourth quarter earnings increased from last year, on a 19 percent growth in revenues and lower income tax, partly offset by higher research costs. Both quarterly earnings and revenues came in ahead of Street estimates.
Moving forward, NetApp provided a weak outlook for the first quarter, citing economic uncertainties and seasonal weakness. The news dragged down NetApp shares about 22 percent to its lowest in a year, in after-hours trade on the Nasdaq.
NetApp, which provides storage virtualization and cloud-based solutions, said its fourth quarter sales rose 19 percent from last year, as customers continued to use its storage efficiency technologies to leverage investments and cut costs.
CEO Tom Georgens said, "With a strong product offering and well established partner ecosystem, NetApp delivered our ninth consecutive quarter of over 20% year-over-year product revenue growth..."
Sunnyvale, California-based NetApp posted fourth quarter net income of $181 million or $0.47 per share, compared to $161 million or $0.40 per share last year.
Excluding items, adjusted earnings for the quarter were $252 million or $0.66 per share, compared to $237 million or $0.59 per share a year ago.
On average, 28 analysts polled by Thomson Reuters expected earnings of $0.63 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter totaled $1.7 billion, compared to $1.43 billion last year. Twenty-eight analysts had a consensus revenue estimate of $1.68 billion for the quarter.
NetApp said its operating expenses for the quarter increased to $773.6 million from $715.3 million last year, due largely to higher research costs.
NetApp expects first quarter earnings in the range of $0.10 to $0.15 per share and adjusted earnings of $0.34 to $0.39 per share. Revenues are estimated between $1.4 billion and $1.5 billion.
Analysts currently expect earnings of $0.59 per share on revenues of $1.61 billion for the first quarter.
NetApp shares plummeted $7.06 or 21.49% to $25.80 in after-hours trade. The stock closed Wednesday's regular session at $32.86, down 1.32%. In the past year, the stock trended in a range $32.28 - $56.49.
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