NetApp (NASDAQ:NTAP) topped first quarter earnings and revenue estimates after the close, sending its shares higher in after-hours and premarket trading Thursday.
The cloud services and data management company posted Q4 EPS of $1.54, $0.20 better than the analyst estimate of $1.34, with revenue for the quarter, which decreased 6% YoY, coming in at $1.58 billion versus the consensus estimate of $1.55B.
NetApp shares are up more than 5% at the time of writing.
The company's hybrid cloud segment revenue was $1.43B, compared to $1.56B in the fourth quarter of fiscal year 2022, while public cloud segment revenue was $151M, compared to $120M in the same period last year.
Billings came in at $1.67B, compared to $2.02B in the same period last year, representing a year-over-year decrease of 17%.
Looking ahead, the company sees Q1 2024 EPS from $1 to $1.10, versus the consensus of $1.19, with revenue between $1.33B and $1.48B, versus the consensus of $1.47B.
FY2024 EPS is expected to come in from $5.65 to $5.85, versus the consensus of $5.57.
In reaction to the report, BofA analysts maintained an Underperform rating and a $61 price target on the stock.
"NetApp reported record margins for F4Q on strong product GM (55%), which came in better than expected on better mix, lower component premiums, and lower FX headwinds," said the analysts. "Although the company is guiding to low-to-mid single y/y revenue decline for F24, and for normal F1H/F2H seasonality of 48%/52%, we see risk to estimates as we do not view this as a typical year with product revenues and billings both down 17% y/y heading into the new fiscal year and macro uncertainty causing customers to exhibit caution in capital expenditures and looking to optimize cloud spend."