NetApp stock jumps 10% after big earnings beat

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NetApp Inc. shares soared more than 10% higher in after-hours trading Wednesday, after the storage company reported unexpected earnings and sales growth. NetApp reported net income of $77 million, or 35 cents a share, on sales of $1.3 billion, up from $1.24 billion the year before. After adjusting for stock-based compensation and other effects, NetApp reported earnings of 73 cents a share, up from 65 cents a share a year ago. Analysts had expected profit and sales to decline from last year, with the average analyst estimating adjusted earnings of 41 cents a share, after NetApp forecast 36 cents to 44 cents a share, on sales of $1.15 billion, also in line with NetApp’s guidance. “Revenue, operating margin and EPS all exceeded our guidance, despite a challenging environment,” Chief Executive George Kurian said in Wednesday’s news release. “Enterprises are increasingly prioritizing transformational and hybrid cloud projects, which drove our momentum as customers turn to NetApp to help them achieve these goals.” After closing with a 1.1% gain at $42.21, NetApp shares topped $46 in after-hours trading immediately following the release of the results. The stock has declined 30% this year, as the S&P 500 index has gained 7.9%.
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