SAN JOSE, Calif. - NetApp Inc. (NASDAQ:NTAP), a leading company in intelligent data infrastructure, has announced its financial outcomes for the fourth quarter and the entire fiscal year 2024, which concluded on April 26, 2024. The results showcased a year-over-year growth in several key financial metrics.
For the fourth quarter, NetApp reported net revenues of $1.67 billion, marking a 6% increase from the $1.58 billion in the same quarter of the previous fiscal year. The company's all-flash array annualized revenue run rate witnessed a significant climb of 17%, reaching $3.6 billion.
The fiscal year 2024 saw NetApp achieving net revenues of $6.27 billion, albeit a slight decrease from the $6.36 billion reported in fiscal year 2023. However, the company's GAAP consolidated gross margins hit a record 71%, with non-GAAP consolidated gross margins even higher at 72%.
NetApp's operational efficiency was reflected in its GAAP operating margins of 19% and record non-GAAP operating margins of 27%. The fiscal year's GAAP net income per share stood at $4.63, with non-GAAP net income per share reaching a record $6.46.
In a move that will please investors, NetApp announced an increase in its quarterly dividend to $0.52 per share and a new share repurchase authorization of an additional $1 billion.
Looking ahead, NetApp provided financial guidance for the first quarter of fiscal year 2025, expecting net revenues to be between $1.455 billion and $1.605 billion. The company also projected earnings per share to range from $0.98 to $1.08 on a GAAP basis and $1.40 to $1.50 on a non-GAAP basis.
For the full fiscal year 2025, NetApp anticipates net revenues to fall between $6.450 billion and $6.650 billion, with consolidated gross margins expected to be in the range of 70% to 71% on a GAAP basis and 71% to 72% on a non-GAAP basis. Operating margins are projected to be between 20% and 21% on a GAAP basis and 27% to 28% on a non-GAAP basis. Earnings per share for the full year are estimated to be $4.96 to $5.16 on a GAAP basis and $6.80 to $7.00 on a non-GAAP basis.
The next cash dividend of $0.52 per share is scheduled to be paid on July 24, 2024, to stockholders of record as of the close of business on July 5, 2024.
InvestingPro Insights
As NetApp Inc. (NASDAQ:NTAP) continues to navigate the competitive landscape of intelligent data infrastructure, the company's strategic financial maneuvers and market performance offer insights into its current valuation and future prospects. According to InvestingPro data, NetApp boasts a market capitalization of $24.04 billion, with a Price/Earnings (P/E) ratio of 26.33, reflecting investor confidence in its earnings potential. Notably, the company has achieved a Gross Profit Margin of 70.09% over the last twelve months as of Q3 2024, underpinning its operational efficiency.
InvestingPro Tips highlight several compelling aspects of NetApp's recent performance and management's strategic direction. Management's aggressive share buyback initiative is a testament to their confidence in the company's intrinsic value, while the consistent dividend payments over the past 12 years underscore a commitment to shareholder returns. Additionally, NetApp's stock is currently trading near its 52-week high, which may indicate strong market sentiment. However, the Relative Strength Index (RSI) suggests that the stock is in overbought territory, which could signal a potential pullback or consolidation phase in the near term.
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