NetApp (NASDAQ:NTAP) faced a sharp decline intra-day today, tumbling over 16% following its fiscal third-quarter earnings report. Despite narrowly surpassing earnings expectations, the data storage company’s revenue fell short of analyst projections, and its forward guidance failed to inspire confidence.
For the quarter, NetApp reported adjusted earnings of $1.91 per share, marginally exceeding the consensus estimate of $1.90. However, revenue came in at $1.64 billion, missing the anticipated $1.69 billion mark.
Investor concerns deepened as the company issued a lackluster forecast for the fourth quarter. NetApp projected adjusted earnings between $1.84 and $1.94 per share on revenue ranging from $1.65 billion to $1.80 billion. This guidance lagged behind Wall Street’s expectations of $1.99 EPS and $1.765 billion in revenue.
The full-year fiscal 2025 outlook also fell below analyst estimates. NetApp now anticipates adjusted EPS of $7.17 to $7.27 with revenue between $6.49 billion and $6.64 billion, trailing projections of $7.33 EPS and $6.67 billion in revenue. The combination of revenue underperformance and cautious forward-looking estimates weighed heavily on investor sentiment, driving the stock’s plunge.