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EPS of $1.15 came in better than the consensus estimate of $1.07. Revenue fell 10% year-over-year to $1.43 billion, above the consensus estimate of $1.41B. Billings were $1.30B, representing a year-over-year decrease of 17%.
“We delivered a solid start to fiscal year 2024 in what continues to be a challenging macroeconomic environment. We are managing the elements within our control, driving better performance in our storage business, and building a more focused approach to cloud,” said CEO George Kurian.
For Q2/24, the company expects EPS in the range of $1.35-$1.45, compared to the consensus of $1.38, and revenue in the range of $1.455B-$1.605B, compared to the consensus estimate of $1.51B.
For the full year, the company anticipates EPS to be in the range of $5.65-$5.85, compared to the consensus of $5.70.
Citi analysts hiked the price target by $3 to $83 per share.
“Beyond FY24, we remain positive on storage market spending trends with NTAP benefitting from continued enterprise digitization and mix shift to higher margin all-flash-arrays, public cloud, and its supporting services but await to see sustainable share gains to turn more constructive,” they said in a note.
Morgan Stanley analysts added:
“NTAP’s FQ1 was slightly better than expected as new flash products began to ramp, but revenue was still down 10% Y/Y given macro headwinds. Cloud run rate came in lower than expected as subscription portion of the business continues to underperform, an inhibitor to further multiple expansion.”
(Additional reporting by Senad Karaahmetovic)
