SUNNYVALE (dpa-AFX) - NetApp Inc. (NTAP) Wednesday reported a third-quarter profit that trumped Wall Street estimates, as revenues grew by 2 percent. However, shares of the company slipped 7% in extended trading session after its third-quarter revenues and fourth-quarter revenue outlook fell short of expectations.
Sunnyvale, California-based NetApp reported third-quarter profit of $249 million or $0.98 per share, compared to last year' loss of $479 million or $1.79 per share.
On an adjusted basis, NetApp's earnings were $1.20 per share, up from $1.05 per share last year. On average, 27 analysts polled by Thomson Reuters expected earnings of $1.15 per share. Analysts' estimates typically exclude special items.
NetApp's revenues for the quarter grew 2 percent to $1.56 billion from $1.54 billion last year. Analysts had a consensus revenue estimate of $1.60 billion.
'Although I am disappointed that revenue came in at the low-end of our guidance range, we continue to demonstrate discipline in how we manage the business. We are playing into the big market transitions from a position of strength and are focused on execution to maximize our opportunity in an uncertain macroeconomic environment,' said CEO George Kurian.
Looking forward to the fourth quarter, NetApp expects adjusted earnings of $1.22 to $1.28 per share and revenues of $1.59 billion to $1.69 billion. Analysts currently estimate earnings of $1.25 per share and revenues of $1.70 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.
Copyright RTT News/dpa-AFX
© 2019 AFX News
