NetApp (NTAP) – Checking In

This leading provider of storage systems, software, and services will be reporting Q3 results after the bell on Wednesday. Ahead of the print, let’s take a look at recent analyst commentary and VAR checks on what we can expect:

JPMorgan – Analyst Paul Coster said he expects NTAP to post Q3 results in-line with expectations. Read-throughs from IT distributors and EMS firms suggests IT spend remains robust relating to AFA storage, converged infrastructure and cloud-based workflows. The analyst does point out that we are lapping tough comps in the 2HFY19, memory prices are easing, and FX headwinds should cause an expected slowdown in the back half. That being said, he believes management has accounted for these risks with conservative guidance, and therefore expect the firm to hit EPS growth targets of mid 20%.