NetApp Inc. Rallies in Premarket: Shares Surge to $105.80

Before the market bell today, shares of NetApp Inc. (NTAP) made a remarkable leap, hitting a value of $105.80, a jump that translates to a robust 18.72% increase, or an uptick of $16.68 from the last closing price. A relatively active session was indicated by the 1.41K shares changing hands, a sign of growing investor enthusiasm for the tech company. The impressive rise in NetApp’s share value may be a reflection of a mix of elements, from fresh company developments and recent financial disclosures to overarching shifts in the market—all of which are under the close watch of the investing community and market experts.

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What Happened Recently

On the 29th of February, 2024, NetApp, a leader in intelligent data infrastructure, disclosed its earnings for the third fiscal quarter of 2024, which concluded on January 26th. The company has witnessed a 5% year-over-year increase in net revenues, reaching $1.61 billion up from the previous year’s $1.53 billion during the same quarter. Revenue from its Hybrid Cloud division rose to $1.46 billion, marking an improvement from the $1.38 billion reported last year. Its Public Cloud sector also saw a slight rise, with revenues ticking up to $151 million from $150 million.

The company’s billings surged to $1.69 billion, showing a robust 7% growth from the third quarter of the prior year. Despite a generally flat trend year-over-year, the NetApp Public Cloud’s annualized revenue run rate stood at $608 million. Meanwhile, the All-flash array segment boasted a significant 21% year-over-year growth, reaching an ARR of $3.4 billion.

Net income under GAAP jumped to $313 million, a substantial increase from the mere $65 million in the same quarter of the previous year. Similarly, non-GAAP net income soared to $410 million from $301 million. Earnings per share reflected this growth, with GAAP earnings per share at $1.48 compared to just $0.30, and non-GAAP earnings per share at $1.94, up from $1.37 in the third quarter of fiscal 2023.

As the quarter drew to a close, NetApp’s financial footing was remarkably strong, with a substantial cushion of $2.92 billion in cash, cash equivalents, and investments. The company’s operations proved to be a powerhouse of liquidity, churning out $484 million in cash—a significant step up from the $377 million generated the year before. In a move that underscores its commitment to shareholder value, NetApp returned a handsome $203 million to its investors through strategic share repurchases and the issuance of dividends.

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