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NetApp Shares Down 6% On Earnings Miss, Weak Outlook

NetApp Inc. (NTAP) Wednesday reported a fourth-quarter profit that fell short of Wall Street estimates, as revenues slipped 3 percent. Shares of the company slipped 6% in extended trading session after its first-quarter outlook was also short of current expectations.

Sunnyvale, California-based NetApp reported fourth-quarter net income of $396 million or $1.59 per share, up from $290 million or $1.06 per share last year.

On an adjusted basis, NetApp's earnings were $305 million or $1.22 per share for the three-month period. Analysts polled by Thomson Reuters expected earnings of $1.26 per share. Analysts' estimates typically exclude special items.

NetApp's revenues for the quarter fell 3.0% to $1.59 billion from $1.64 billion last year. Analysts had a consensus revenue estimate of $1.65 billion.

"Despite the modest shortfall relative to our fiscal year 2019 expectations, we made significant progress in the strategic markets of all-flash, private cloud, and cloud data services. Our Data Fabric strategy clearly differentiates us from our competitors," said CEO George Kurian.

Looking forward to the first quarter, NetApp expects adjusted earnings of $0.78 to $0.86 per share and revenues of $1.315 billion to $1.465 billion. Analysts currently estimate earnings of $1.05 per share and revenues of $1.50 billion.

NTAP closed Wednesday's trading at $67.10, down $2.89 or 4.13%, on the Nasdaq. The stock further slipped $4.10 or 6.11% in the after-hours trade.

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