NetApp stock dives after earnings miss, weak forecast
NetApp Inc. NTAP, -4.13% shares dropped more than 5% in late trading Wednesday after the data-storage company reported weaker than expected earnings and revenue and projected declining quarterly sales and profit. In a fiscal fourth-quarter earnings report, NetApp reported income of $396 million, or $1.59 a share, on sales of $1.59 billion, down from $1.64 billion the year before. After adjusting for stock-based compensation, restructuring charges and other effects, the company reported earnings of $1.22 a share. Analysts on average expected adjusted earnings of $1.26 a share on sales of $1.64 billion, according to FactSet. NetApp said it expects first-quarter adjusted earnings of 78 cents to 86 cents a share on sales of $1.32 billion to $1.47 billion, which suggests a decline from adjusted earnings of $1.04 a share on sales of $1.47 billion in the previous fiscal first quarter. Analysts on average were projecting adjusted earnings of $1.05 a share on sales of $1.49 billion, according to FactSet. NetApp did increase its dividend 20% for the first quarter. NetApp shares closed 4.1% lower at $67.10 Wednesday, then declined lower than $64 in after-hours action immediately following the release of the report.
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