NetApp did not provide second-quarter revenue guidance during its recent quarterly results, citing lake of macroeconomic visibility, so it will be interesting to see whether the firm brushes off its crystal ball Thursday.
The storage specialist also unveiled a shiny new CEO during the summer, with COO Tom Georgens taking the company's reins from Dan Warmenhoven. Described as a "planned transition", Warmenhoven now serves as the firm's executive chairman, and investors will be keen to see how his successor maintains the NetApp growth trajectory.
With NetApp locked in a market share battle with rivals EMC and Hewlett-Packard (HPQ), it seems likely that the firm will look at other acquisitions and a number of names have already been mentioned. Possible targets could include software specialist CommVault (CVLT) Virtual Tape Library (VTL) firm FalconStor (FALC) or privately-held SepatonAnother possibility is NetApp itself becoming acquisition bait, according to Broadpoint AmTech's Marshall. "It has been widely speculated over the last few years that NetApp is an attractive take-over candidate for larger, more mature IT companies like Cisco (CSCO), IBM (IBM) and Hewlett-Packard," he wrote. "While we have no insight as to the validity of these speculations, we do believe that it would make sense for a larger IT company to acquire NetApp as it would be attractive from a product portfolio and accretion perspective." NetApp shares dipped 77 cents, or 2.9%, to $26.06 Wednesday, while the Nasdaq rose 0.01%. -- Reported by James Rogers in New York
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV