NetApp shares rise after results beat the Street

NetApp shares rise after results beat the Street

NetApp Inc. shares rose in the extended session Tuesday after the provider of data, storage and cloud management for enterprise reported second-quarter revenue and adjusted earnings that beat Wall Street estimates.

NetApp NTAP, +1.59% shares climbed as much as 4.75% in after-hours trading after closing 1.6% higher in the regular session at $54.16.

The Sunnyvale, Calif.-based company attributed its performance partly to to the strength of its growing cloud business during what its CEO called a busy quarter.

“We are a primary beneficiary of the increasing importance of data and are uniquely positioned to help customers with their digital transformations,” NetApp Chief Executive George Kurian said in a statement.

For the quarter ended Oct. 30, the company reported net income of $137 million, or 61 cents a share, compared with $243 million, or $1.03 a share, in the year-ago period. Adjusted earnings were $1.05 a share, excluding depreciation and amortization, stock-based compensation and more. Revenue rose to $1.42 billion from $1.37 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 73 cents a share on revenue of $1.31 billion.

NetApp expects third-quarter earnings of 67 cents to 75 cents a share on revenue of $1.34 billion to $1.49 billion, while analysts had forecast 89 cents a share on revenue of $1.36 billion.

The company’s shares have fallen 13% this year. Meanwhile, the S&P 500 Index SPX, +1.12% is up about 12% year to date.

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