NetApp to Report Q2 Earnings: Here's What Investors Should Know

NetApp NTAP is slated to release second-quarter fiscal 2025 earnings on Nov. 21.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company expects non-GAAP earnings per share to be between $1.73 and $1.83 for the quarter. The Zacks Consensus Estimate is pegged at $1.79 per share, indicating an increase of 13.3% from the year-ago level.Net revenues are anticipated in the range of $1.565-$1.715 billion. The Zacks Consensus Estimate is pegged at $1.64 billion, implying a 5.3% increase from the prior-year level.NTAP beat estimates in three of the trailing four quarters, delivering an average earnings surprise of 8.6%. It matched the consensus estimate for the remaining quarter. The stock has gained 50.3% compared with the industry’s growth of 12.1% in the past year.Image Source: Zacks Investment ResearchFactors at Play for NTAP’s Q2 EarningsContinued demand from customers for NetApp’s portfolio of modern all-flash arrays, especially the C-series capacity flash and ASA block-optimized flash bodes well. Momentum in the new all-flash A-series is likely to have acted as a tailwind. These enterprise storage products will allow users to boost workloads including traditional enterprise applications and Gen AI. The company expects the new AFF A-series, along with its C-series and ASA products to capture further share in the all-flash market. Also, Keystone’s storage-as-a-service offering has been gaining significant traction, with revenues increasing more than 60% year over year in the last reported quarter.  Our estimate for Hybrid Cloud’s fiscal second-quarter revenues is pegged at $1,483.5 million, indicating a rise of 5.4% from the year-ago level. NetApp, Inc. Price and EPS Surprise NetApp, Inc. price-eps-surprise | NetApp, Inc. QuoteThe company has been gaining from data-driven digital and cloud transformations involving business analytics, artificial intelligence, data security and application modernization. In the fiscal first quarter, the company won more than 50 AI and data lake modernization deals. Strength in first-party and hyperscaler marketplace storage services is likely to have benefited top-line expansion for Public Cloud revenues. However, the decline in subscription services’ revenues is concerning. NTAP expects headwinds from subscription services to lessen as fiscal 2025 progresses. Our estimate for Public Cloud revenues is pegged at $159 million, up 3.3% from the prior-year actual.Strengthening go-to-market activities and various cloud collaborations remain as other major positives. Margin performance is likely to gain from a favorable product mix and operating discipline. However, volatile global macroeconomic conditions, cautious IT spending environment and cloud cost optimization efforts by clients remain concerning.What Our Model Says About NTAPOur proven model does not predict an earnings beat for NTAP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but this is not the case here. NTAP has an Earnings ESP of -0.45% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.GDS Holdings Limited GDS currently has an Earnings ESP of +4.76% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. GDS is scheduled to report quarterly earnings on Nov.19. The Zacks Consensus Estimate for GDS’ to-be-reported quarter’s bottom line is pegged at a loss of 21 cents. The consensus estimate for revenues is pegged at $415.4 million. Shares of GDS have gained 86.6% in the past year.Walmart Inc. WMT presently has an Earnings ESP of +1.44% and a Zacks Rank #3. WMT is scheduled to report quarterly numbers on Nov. 19. The Zacks Consensus Estimate for Walmart’s to-be-reported quarter’s earnings and revenues is pegged at 53 cents per share and $167.5 billion, respectively. Shares of WMT have gained 62.7% in the past year.NVIDIA Corporation NVDA has an Earnings ESP of +1.70% and a Zacks Rank #1 at present. NVDA is scheduled to report quarterly figures on Nov. 20.  The Zacks Consensus Estimate for NVDA’s to-be-reported quarter’s earnings and revenues is pegged at 74 cents per share and $32.95 billion, respectively. Shares of NVDA have increased 181.7% in the past year.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT): Free Stock Analysis Report NetApp, Inc. (NTAP): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report GDS Holdings (GDS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks