NASDAQ$NTAP

NetApp Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

NetApp's Q1 2024 results reflected a challenging macroeconomic environment, with strategic focus on hybrid multicloud infrastructures.

NetApp reported a decrease in net revenues to $1.43 billion, a 10% year-over-year decline. The company is focusing on better performance in the storage business and a more focused approach to cloud, introducing innovations like NetApp ASA A-Series and the Ransomware Recovery Guarantee.

  • Net revenues were $1.43 billion, a 10% decrease compared to Q1 2023.
  • Hybrid Cloud segment revenue was $1.28 billion, down from $1.46 billion in Q1 2023.
  • Public Cloud segment revenue increased to $154 million, compared to $132 million in Q1 2023.
  • GAAP net income was $149 million, and non-GAAP net income was $249 million.

Headline financials

Total Revenue

$1.43B

Previous: $1.59B-10.1%
EPS (adj)

$1.15

Previous: $1.20-4.2%
Capital Expenditures

-$35M

Previous: -$65M+46.2%
Free Cash Flow

$418M

Previous: $216M+93.5%
Net Income

$149M

Previous: $214M-30.4%
Operating Income

$178M

Previous: $255M-30.2%
Gross Profit

$996M

Previous: $1.05B-4.8%
Cash & Equivalents

$2.02B

Previous: $3.29B-38.6%
Total Assets

$9.27B

Previous: $9.54B-2.9%
Stock-Based Comp

$87M

Previous: $67M+29.9%

Revenue & EPS history

NetApp · Revenue · Quarterly

$1.43B

Q1 2024-10.1%vs Q1 2023
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

NetApp · $1.43B total across 2 segments · Q1 2024

  • Hybrid Cloud
    $1.28B-12.3%
  • Public Cloud
    $154M+16.7%

Forward guidance

NetApp expects net revenues to be in the range of $1.455 billion to $1.605 billion and earnings per share to be between $0.90 and $1.00 (GAAP) or $1.35 and $1.45 (Non-GAAP) for the second quarter of fiscal year 2024.

Tailwinds

  • Net revenues are expected to be in the range of $1.455 billion to $1.605 billion
  • GAAP earnings per share is expected to be in the range of $0.90 - $1.00
  • Non-GAAP earnings per share is expected to be in the range of $1.35 - $1.45
  • Consolidated gross margins are expected to be ~69% (GAAP)
  • Consolidated gross margins are expected to be ~70% (Non-GAAP)

Headwinds

  • Net revenues are expected to be down year-over-year in the low-to-mid single digits on a percentage basis.
  • GAAP Operating margins are expected to be ~18%
  • Non-GAAP Operating margins are expected to be ~25%
  • GAAP earnings per share is expected to be in the range of $3.75 - $3.95
  • Non-GAAP earnings per share is expected to be in the range of $5.65 - $5.85

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.2%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+1.9%

Avg return

30 days after

51%

35 / 69 earnings

Positive

+19.6%

Q3 2024

Best reaction

-16.8%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+8.5%+10.3%
Q3 2026-2.4%+0.4%+3.2%
Q2 2026-6.7%+0.7%-0.9%
Q1 2026+4.4%+2.9%+6.9%
Q4 2025-0.2%+4.6%+6.6%
Q3 2025-15.6%-19.8%-25.2%
Q2 2025-0.9%+5.0%-4.1%
Q1 2025-10.5%-9.3%-8.9%
Q4 2024+2.5%+1.3%+9.6%
Q3 2024+19.6%+16.6%+19.2%
Q2 2024+14.7%+16.9%+13.0%
Q1 2024-1.3%-0.7%-0.6%
Q4 2023+4.1%+1.7%+10.6%
Q3 2023+0.4%-1.8%-7.4%
Q2 2023-6.8%-8.5%-17.2%
Q1 2023+7.2%+0.2%-13.4%
Q4 2022+1.3%-1.5%-12.7%
Q3 2022-7.9%-9.0%-0.5%
Q2 2022-2.3%-1.6%+0.2%
Q1 2022+6.6%+9.4%+15.9%
Q4 2021+2.6%+5.6%+8.2%
Q3 2021-11.7%-5.9%+7.8%
Q2 2021+11.1%+12.5%+24.3%
Q1 2021+5.1%+13.5%+0.5%
Q4 2020-2.2%-5.5%-2.5%
Q3 2020-6.6%-8.2%-30.9%
Q2 2020+3.1%+5.6%+5.2%
Q1 2020-1.1%+0.0%+20.4%
Q4 2019-11.9%-11.4%-12.2%
Q3 2019-5.2%-4.6%+1.4%
Q2 2019-12.7%-14.7%-22.1%
Q1 2019-3.9%-0.5%+3.6%
Q4 2018+1.6%+0.2%+14.8%
Q3 2018-1.8%-3.8%+8.8%
Q2 2018+16.4%+20.0%+25.5%
Q1 2018-5.7%-7.2%-2.2%
Q4 2017+3.7%+1.9%+1.0%
Q3 2017+2.6%+1.6%+6.4%
Q2 2017+5.8%+6.5%+4.5%
Q1 2017+17.0%+19.9%+20.2%
Q4 2016-1.2%+0.4%-1.9%
Q3 2016+3.6%
Q2 2016-1.1%
Q1 2016+1.7%
Q4 2015-10.1%
Q3 2015-6.4%
Q2 2015-2.8%
Q1 2015+5.2%
Q4 2014+6.5%
Q3 2014-5.9%
Q2 2014+2.2%
Q1 2014-0.6%
Q4 2013+0.2%
Q3 2013+1.3%
Q2 2013+14.7%
Q1 2013+4.9%
Q4 2012+0.6%
Q3 2012+9.3%
Q2 2012-14.7%
Q1 2012-16.8%
Q4 2009-2.9%
Q4 2011-2.9%
Q3 2010-2.5%
Q3 2011-2.5%
Q2 2011-0.8%
Q4 2010+3.9%
Q2 2010+3.9%
Q1 2011+3.9%
Q1 2010+3.9%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro