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NetApp Tops Estimates, Raises Dividend and Boosts Share Buybacks

Data storage provider offers upbeat guidance for fiscal first quarter.
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NetApp, Inc.  (NTAP) - Get Free Report reported better-than-expected results for its fiscal fourth quarter, raised its dividend and announced a boost to its share buyback plan after the close, Wednesday.

The company reported non-GAAP earnings per share of $1.19 on revenue of $1.56 billion.  

NetApp had been expected to make $1.12 a share, on sales of $1.5 billion, based on a FactSet survey of 23 analysts.

In the same period a year ago the company posted earnings of $1.19 a share on sales of $1.4 billion. It reported net income of $277 million.

"We delivered fourth quarter results above expectations, capping off a solid year of growth," said George Kurian, NetApp CEO, in a statement. "Our focused execution last year has set us up well for FY22. I am excited about the year ahead and confident in our ability to grow revenue while delivering operating leverage as we support our customers on their cloud and digital transformation journeys."

NetApp said it is raising its quarterly dividend by 2 cents a share to 50 cents, payable July 28  to shareholders of record at the close on July 9.

The company also said it has authorized an additional $500 million for the repurchase of shares of its common stock.

For the fiscal first quarter, NetApp forecasted non-GAAP earnings per share of 89 cents to 97 cents on revenue of $1.37 billion to $1.47 billion.

Analysts polled by FactSet currently are forecasting non-GAAP earnings for the period of 87 cents on revenue of $1.37 billion.

NetApp has seen its business surge during the coronavirus pandemic, as companies have shifted more and more operations onto cloud-based storage systems requiring increased security services.

Shares are up more than 50% over the past 12 months.

In regular trading Wednesday, NetApp shares rose 0.5%.  The stock gain 55 cents, or 0.7%, to $77.06 in after-hours trading.