Shares of data- and cloud-storage services company NetApp (NTAP) - Get Report plunged more than 10% in early trading on Thursday after it reported weaker-than-expected earnings and revenue, and also forecast an upcoming drop in quarterly sales and profit.
For its fiscal fourth quarter, NetApp said it earned $396 million, or 99 cents a share, vs. $290 million, or $1.06 a share, in the comparable year-earlier quarter. On an adjusted basis, the company said it earned $1.22 a share. Analysts surveyed by FactSet on average were expecting adjusted earnings of $1.26.
Revenue came in at $1.59 billion, down from $1.64 billion a year earlier and below FactSet consensus estimates of $1.64 billion.
Looking ahead, NetApp said it now expects first-quarter adjusted earnings of 78 cents to 86 cents a share on sales of $1.32 billion to $1.47 billion. Analysts on average were projecting adjusted earnings of $1.05 a share on sales of $1.49 billion.
However, the company said it will increase its first quarter and fiscal year 2020 dividend by 20% to 48 cents a share. The quarterly dividend will be paid on July 24, to shareholders of record as of the close of business on July 5.
Shares of NetApp were down just over 10%, or $6.75, at $60.35 in early trading on the Nasdaq Stock Market on Thursday. They ended the day Wednesday down 4.13% at $67.10.