SUNNYVALE (dpa-AFX) - NetApp Inc. (NTAP) Wednesday reported an increase in profit for the second quarter, driven largely by 7 percent growth in revenues. Earnings and revenues for the quarter trumped Wall Street estimates. However, shares of the company were down 5% in extended trading session.
Sunnyvale, California-based NetApp's second-quarter profit rose to $241 million or $0.91 per share from $174 million or $0.63 per share last year.
On an adjusted basis, NetApp's earnings were $280 million or $1.06 per share, up from $221 million or $0.80 per share last year. On average, 26 analysts polled by Thomson Reuters expected earnings of $0.99 per share. Analysts' estimates typically exclude special items.
NetApp's revenues for the quarter grew 7 percent to $1.52 billion from $1.42 billion last year. Analysts had a consensus revenue estimate of $1.51 billion.
'Through focus and disciplined execution, NetApp again delivered strong results in the second quarter. We introduced a tremendous amount of innovation across our portfolio that helps us drive share gains, expand our available market, and set the industry agenda,' said George Kurian, chief executive officer.
Looking forward to the third quarter, NetApp expects third-quarter earnings of $1.12 to $1.18 per share and revenues of $1.550 billion to $1.650 billion. Analysts currently estimate earnings of $1.12 per share and revenues of $1.60 billion.
NTAP closed Wednesday's trading at $78.03, down $0.86 or 1.09%, on the Nasdaq. The stock further slipped $4.53 or 5.81% in the after-hours trade.
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