NASDAQ$NTAP

NetApp Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported solid margins, cash flow, and operating leverage.

NetApp reported third quarter fiscal year 2020 results with strong gross margins, cash flow, and operating leverage. Net revenues were $1.40 billion, and GAAP net income was $277 million.

  • All-flash array annualized net revenue run rate of $2.3 billion increased 7% quarter-over-quarter
  • NetApp™ cloud data services annualized recurring revenue of approximately $83 million, an increase of 146% year-over-year
  • Consolidated GAAP gross margin of 67.0%, non-GAAP gross margin of 67.8%
  • $420 million in cash from operations; $388 million in free cash flow

Headline financials

Total Revenue

$1.4B

Previous: $1.56B-10.2%
EPS (adj)

$1.16

Previous: $1.20-3.3%
GAAP Operating Margin

18.0%

No prior period
GAAP Gross Margin

67.0%

No prior period
Capital Expenditures

-$100M

Previous: -$138M+27.5%
Free Cash Flow

$577M

Previous: $804M-28.2%
Net Income

$277M

Previous: $249M+11.2%
Operating Income

$268M

Previous: $311M-13.8%
Gross Profit

$941M

Previous: $982M-4.2%
Cash & Equivalents

$2.71B

Previous: $2.27B+19.1%
Total Assets

$7.48B

Previous: $8.42B-11.1%
Stock-Based Comp

$36M

Previous: $43M-16.3%

Revenue & EPS history

NetApp · Revenue · Quarterly

$1.4B

Q3 2020-10.2%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

NetApp · $1.56B total across 2 segments · Q2 2024

  • Hybrid Cloud
    $1.41B-7.4%
  • Public Cloud
    $154M+8.5%

Forward guidance

The Company provided the following financial guidance for the fourth quarter of fiscal year 2020: •Net revenues are expected to be in the range of: $1.455 billion to $1.605 billion GAAP Non-GAAP •Earnings per share is expected to be in the range of: $1.11 -$1.19 $1.28 - $1.36

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 Q3 2020

Historical avgQ3 2020

+0.1%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+1.9%

Avg return

30 days after

50%

34 / 68 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
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 2011-2.9%
Q4 2009-2.9%
Q3 2010-2.5%
Q3 2011-2.5%
Q2 2011-0.8%
Q2 2010+3.9%
Q1 2011+3.9%
Q1 2010+3.9%
Q4 2010+3.9%

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