NetApp Shares Plunge 11% on Q2 Revenue Miss & Disappointing Guidance

NetApp (NASDAQ:NTAP) shares were down more than 11% pre-market today after the company reported its Q2 results, with revenue coming in at $1.66 billion (up 6% year-over-year), missing the Street estimate of $1.68 billion. EPS was $1.48, compared to the Street estimate of $1.33.

The company anticipates Q3 EPS to be in the range of $1.25-$1.35, worse than the consensus estimate of $1.44, and revenue of $1.525-1.675 billion, compared to the consensus estimate of $1.71 billion.

Fiscal 2023 EPS is expected to be in the range of $5.30-$5.50, missing the consensus estimate of $5.52. Management expects net revenue to grow in the range of 2-4% in 2023.

Analysts at Deutsche Bank provided their views on the company, expecting slower growth for the business over the next few quarters despite some positive demand indicators. Post results, the analysts reduced their 2023 EPS estimate from $6.00 to $5.60 and cut their price target from $84 to $78, while reiterating the Buy rating.