NEW YORK (TheStreet) -- Shares of NetApp (NTAP) - Get Report are slipping 3% to $24.75 on Thursday morning after the Sunnyvale, CA-based company posted lower-than-expected results for the 2016 fiscal fourth quarter.
After yesterday's closing bell, the storage and data management company reported earnings of 55 cents per share, below analysts' estimates of 58 cents per share.
Revenue was $1.38 billion for the period, while analysts were expecting $1.4 billion.
For the 2017 fiscal first quarter, NetApp forecasts earnings per share between 34 cents and 39 cents on revenue of $1.2 billion to $1.35 billion. Analysts are looking for earnings of 45 cents per share on revenue of $1.26 billion.
Pacific Crest maintained its "sector weight" rating on the stock following the results.
"Product revenue declined by double digits for the fifth consecutive quarter, sparking another shortfall in another case of an increasingly challenged legacy storage supplier being disrupted by flash and cloud trends," the firm wrote in a note to investors.
"Overly aggressive promotions have pressured product gross margin to a decade-low of 46.8%," Pacific Crest added.
Additionally, NetApp said Steve Smith, the CEO of data center company Equinix (EQIX), has joined its board of directors.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins.
However, the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: NTAP