NetApp Shares Fall 10% After 4Q Earnings
May 23 2019 - 1:10PM
Dow Jones News
By Patrick Thomas
Shares of NetApp Inc. (NTAP) were down 10% to $60.19 after its
fourth-quarter earnings missed expectations and the company gave a
lower-than-expected outlook for the current quarter.
The Sunnyvale, Calif.-based cloud data services company said
revenue fell 3% to $1.59 billion for the quarter, analysts polled
by FactSet had expected $1.64 billion in revenue.
Chief Executive George Kurian said on a conference call that the
company didn't execute well on its maintenance renewals in the
quarter and that data center deals are taking longer and require
greater effort to close.
For its current quarter, the company expects revenue between
$1.32 billion and $1.47 billion. Analysts at Raymond James were
hoping for $1.48 billion in revenue, but the analysts said in a
research note that they remain optimistic about the company's
long-term prospects.
"Despite the miss and lower outlook, management's full-year
guidance implies a 2H19 recovery," the analysts said in a research
note. "The broader based market headwinds were not too
surprising."
Raymond James maintained its "market perform" rating on
NetApp.
Write to Patrick Thomas at patrick.thomas@wsj.com
(END) Dow Jones Newswires
May 23, 2019 12:55 ET (16:55 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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