NetApp Inc (NASDAQ: NTAP) shares tumbled despite reporting a third-quarter earnings beat.
The Sunnyvale, Calfornia-based firm reported net revenues of $1.52 billion, increasing 8% year-over-year from $1.40 billion in the third quarter of fiscal 2017
There was also a GAAP net loss of $506 million, compared to GAAP net income of $146 million in the third quarter of fiscal 2017; non-GAAP net income of $273 million, compared to non-GAAP net income of $231 million in the third quarter of fiscal 2017
The GAAP net loss per share proved to be $1.89, compared to GAAP net income per share of $0.52 in the third quarter of fiscal 2017; non-GAAP net income per share4 of $0.99, compared to non-GAAP net income per share of $0.82 in the third quarter of fiscal 2017
Said CEO George Kurian, “NetApp again delivered strong results in the third quarter with accelerating revenue and strong cash generation. It is rewarding to see the results of our improved execution as we transform NetApp to deliver sustained and profitable growth
"We saw a solid demand environment and customer momentum, landing wins and footprint expansions with leading organizations in all geographies. With our Data Fabric Strategy and industry-leading solutions, we are winning new customers and expanding our business opportunity."
In terms of guidance, net revenues are expected to be in the range of $1.525 billion to $1.675 billion in the fourth fiscal quarter of 2018, while GAAP EPS is pegged at $0.75 to $0.83, non-GAAP ranging from $0.95 to $1.03.
NetApp shares were pummeled $4.39, or 7.2%, to $56.25, within a few minutes of Thursday’s close.