NetApp sticks with full-year forecast amid 'challenging macroeconomic environment'

Cloud-services provider NetApp Inc. (NTAP) on Wednesday forecast second-quarter profit and sales that came in above expectations, but the company stuck with its full-year profit outlook amid a "challenging macroeconomic environment" still marked by pockets of cautious tech spending. The company forecast second-quarter adjusted earnings per share of $1.35 to $1.45, on sales of $1.455 billion to $1.605 billion, with the midpoint of both forecasts above FactSet estimates of $1.38 per share and $1.51 billion. NetApp held to its full-year adjusted per-share profit forecast of $5.65 to $5.85. Shares were down 0.7% after hours. For its first quarter, the company reported net income of $149 million, or 69 cents a share, compared with $214 million, or 96 cents a share, in the same quarter last year. Adjusted earnings per share were $1.15. Revenue was $1.43 billion, down from $1.59 billion in the prior-year quarter. Analysts polled by FactSet expected NetApp to report adjusted earnings of $1.07 a share, on revenue of $1.41 billion. Chief Executive George Kurian said the company was controlling what it could control, and he called out better performance in its storage business and "substantial innovation that helps our customers build stronger, smarter and more efficient hybrid multicloud infrastructures."

-Bill Peters

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08-23-23 1640ET

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