NetApp Inc. (NASDAQ:NTAP) has not had the best of rides after powering to record highs of $71 a share early in the year. The stock has come under pressure erasing all the gains accrued for the better part of the new year. However, the sell-off should not be a point of concern as the provider of software systems and services for managing and sharing data on-premises and on public clouds appear to be firing from all angles.
Strong Quarter
Another strong quarter of revenue, margin, and earnings growth all but underscore growth in the core business. Likewise, the company marked a third consecutive quarter of revenue and billings growth helped by management sharpening execution.
According to the Chief Executive Officer, George Kurian, NetApp remains well-positioned to address customers' requirements in relation to digital transformations, conversely, generate significant revenues. With customers increasingly turning to the company to help manage data in the hybrid cloud, it should be able to ink big deals.
In the most recent quarter, the company generated revenues totaling $1.47 billion, representing a 5% year over year increase and beating consensus estimates of $1.43 billion. Adjusted earnings per share were down to $1.10 from $1.16 a share reported a year ago but slightly higher to consensus estimates of $1.01 a share expected.
Shareholders Value
During the quarter, the company returned $157 million to shareholders in the form of buybacks and share repurchases. Similarly, NetApp has confirmed a $0.48 a share dividend to be paid to shareholders on record as of the close of business on April 9, 2021.
Net App ended the quarter with $3.89 billion in cash and cash equivalent. For the fourth quarter, management expects the company to post revenues of between $1.44 billion and $1.54 billion. Earnings per share, on the other hand, are expected at between $1.06 and $1.14 a share.
The solid financial results and Q4 outlook might as well be the catalyst to avert a further plunge of the stock after the recent correction. NetApp has been in correction mode in the wake of the broader market turning bearish.