NetApp raises annual forecasts on steady demand for cloud services

NetApp

28/08/2024 22:37

Aug 28 (Reuters) - NetApp  NTAP.O  raised its annual
revenue and profit forecasts on Wednesday, anticipating steady
demand for its cloud-based data management services, and said
Chief Financial Officer Mike Berry will retire next year.
    Businesses have increased spending on cloud-based solutions
as they look to transform their core technology infrastructure.
    Investments in high-capacity storage solutions such as those
provided by NetApp have also surged to meet increasing workload
demands essential for enhancing productivity and to employ
artificial intelligence.
    In March, the company launched its AI-optimized tool, NetApp
AIPod, which provides infrastructure for organizations'
highest-priority AI projects, including training and
inferencing.
    NetApp helps businesses improve efficiency of their data
storage infrastructure and counts companies like Amazon.com's
 AMZN.O  Amazon Web Services, Google Cloud and Microsoft's
 MSFT.O  Azure as clients.
    NetApp now sees fiscal 2025 revenue between $6.48 billion
and $6.68 billion, compared with its prior projection of $6.45
billion and $6.65 billion. Analysts on average were expecting
$6.56 billion, according to LSEG data. 
    The company expects an annual adjusted profit per share
between $7 and $7.20, above estimates of $6.89.
    For the second quarter, the company expects to report net
revenues between $1.57 billion and $1.72 billion, above
estimates of $1.63 billion.
    Net revenue for the first quarter ended July 26 came in at
$1.54 billion, compared with analysts' estimate of $1.53
billion.
    The hybrid cloud segment, which accounts for almost all of
NetApp's revenue, recorded sales of $1.38 billion, up 7.8% from
a year ago.
    On an adjusted basis, its profit rose to $1.56 per share
from $1.15.
    The company said CFO Berry, who will retire on May 23, will
remain in his role until a successor is named.

 (Reporting by Juby Babu in Mexico City; Editing by Maju Samuel)
 ((Juby.Babu@thomsonreuters.com;))