NetApp (NTAP, $67.35) shares drop more than -8%, on revenue miss
NetApp Inc.’s fiscal third-quarter revenue fell short of analysts’ estimates, leading to its shares declining -8.8% Thursday.
The hybrid cloud & data storage/management company’s revenue increased +2% year-over-year to touch $1.56 billion in the fiscal third-quarter, but still missed analysts’ expectation of $1.60 billion (based on FactSet poll).
Nevertheless, the company reported adjusted earninsg of $1.20 a share for the quarter, thereby beating analysts' expectations of $1.15 a share (based on FactSet poll).
NetApp’s unadjusted total earnings came in at $249 million (or 98 cents a share) in the quarter, compared to a net loss of -$479 million (or -$1.79 a share) of the year-ago quarter.
For the current quarter ending in April, NetApp projects its per-share earnings to range between $1.22 to $1.28. Analysts are expecting the figure to be $1.25 a share. The company is expecting revenue to range from $1.59 billion to $1.69 billion for the fiscal fourth quarter, while analysts’ prediction is $1.71 billion.
NTAP in upward trend: price may jump up because it broke its lower Bollinger Band on October 22, 2024
NTAP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 27 cases where NTAP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for NTAP crossed bullishly above the 50-day moving average on October 07, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 20 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NTAP advanced for three days, in of 348 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 302 cases where NTAP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 22, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on NTAP as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for NTAP turned negative on October 22, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
NTAP moved below its 50-day moving average on October 22, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NTAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NTAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (21.786) is normal, around the industry mean (6.307). P/E Ratio (23.925) is within average values for comparable stocks, (58.153). Projected Growth (PEG Ratio) (0.944) is also within normal values, averaging (55.962). Dividend Yield (0.019) settles around the average of (0.034) among similar stocks. P/S Ratio (3.636) is also within normal values, averaging (11.483).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
Provides data management and storage solutions
Industry ComputerPeripherals