NetApp Stock Jumps Over 24% After Solid Quarterly Earnings

NetApp's ( NTAP ) shares surged over 24% in premarket trading on Friday, following the announcement of its quarterly earnings report that exceeded analysts' expectations. The cloud storage firm raised its full-year fiscal 2024 outlook and stated that it foresees continued strength in its all-flash products and marketplace services. NetApp's ( NTAP ) Hybrid Cloud segment witnessed a 6% increase in revenue from the previous year, primarily driven by the company's recently introduced all-flash products, which accounted for 60% of the unit's sales during the quarter. The company's cloud storage solutions also saw good momentum in artificial intelligence (AI) during the quarter, with "several large Nvidia ( NVDA ) SuperPOD and BasePOD deployments." NetApp CEO George Kurian said, "Our modern approach to unified data storage, spanning all-flash and cloud environments, is clearly resonating with customers."

Looking ahead, NetApp ( NTAP ) lifted its full-year fiscal 2024 adjusted earnings guidance to between $6.40 and $6.50 per share, up from its prior forecast of $6.05 to $6.25 a share, and raised its revenue outlook for the period to between $6.185 billion and $6.335 billion. Additionally, the company reiterated its outlook for the fiscal fourth quarter, projecting adjusted earnings of between $1.73 and $1.83 per share and revenue of $1.585 billion to $1.735 billion. NetApp's CFO, Mike Berry, said, "We expect to see continued strength in all-flash products and hyperscaler first party and marketplace services" in the coming quarters.

After making several legs higher, NetApp's ( NTAP ) share price has coiled within a pennant since early December. This chart pattern typically indicates a continuation of the prevailing trend. Upon an earnings-driven breakout above the pennant, look for a potential measured move up to around $110.

NetApp's shares were up 17.3% at $104.50 about 90 minutes before Friday's opening bell.