NetApp Q2 2024 Earnings Report
Key Takeaways
NetApp reported a strong second quarter with revenue above the midpoint of guidance and record highs for gross margins, operating margins, and EPS. Net revenues were $1.56 billion, and GAAP net income per share was $1.10.
Net revenues reached $1.56 billion.
GAAP consolidated gross margins hit a record of 71%, with non-GAAP gross margins at 72%.
GAAP operating margins were 20%, while non-GAAP operating margins reached a record 27%.
GAAP net income per share was $1.10, with non-GAAP net income per share at a record $1.58.
NetApp
NetApp
Forward Guidance
The Company provided the following financial guidance for the third quarter of fiscal year 2024: Net revenues are expected to be in the range of: $1.51 billion - $1.67 billion GAAP Earnings per share is expected to be in the range of: $1.17 - $1.27 Non-GAAP Earnings per share is expected to be in the range of: $1.64 - $1.74
Positive Outlook
- Net revenues are expected to be in the range of $1.51 billion - $1.67 billion.
- GAAP Earnings per share is expected to be in the range of: $1.17 - $1.27
- Non-GAAP Earnings per share is expected to be in the range of: $1.64 - $1.74
- Consolidated gross margins are expected to be approximately 70% (GAAP) and 71% (Non-GAAP) for the full fiscal year 2024.
- Operating margins are expected to be approximately 19% (GAAP) and 26% (Non-GAAP) for the full fiscal year 2024.
Challenges Ahead
- Net revenues are expected to be down approximately 2% year-over-year for the full fiscal year 2024.
- GAAP Earnings per share is expected to be in the range of: $4.15 - $4.35
- Non-GAAP Earnings per share is expected to be in the range of: $6.05 - $6.25
- Uncertainty in global political and macroeconomic conditions.
- Potential impact of supply chain disruptions on business operations.