Investors in NetApp, Inc. (NASDAQ:NTAP) had a good week, as its shares rose 2.8% to close at US$126 following the release of its full-year results. NetApp reported in line with analyst predictions, delivering revenues of US$6.3b and statutory earnings per share of US$4.63, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, NetApp's 17 analysts are now forecasting revenues of US$6.55b in 2025. This would be a credible 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 8.8% to US$5.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.55b and earnings per share (EPS) of US$5.19 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The consensus price target rose 5.4% to US$126despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of NetApp's earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on NetApp, with the most bullish analyst valuing it at US$155 and the most bearish at US$105 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting NetApp's growth to accelerate, with the forecast 4.5% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.9% per year. So it's clear that despite the acceleration in growth, NetApp is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that NetApp's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on NetApp. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for NetApp going out to 2027, and you can see them free on our platform here..
We also provide an overview of the NetApp Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.