NEW YORK (TheStreet) -- Shares of data software company NetApp (NTAP) closed down 10% Thursday, making it TheStreet's Move of the Day.
The stock plummeted after reporting disappointing fiscal 2015 fourth-quarter results on Wednesday. Non-GAAP earnings per share came in at 65 cents, falling short of the 84 cents earned during the same quarter last year. The company reported full-year net revenue of $6.12 billion for its fiscal 2015, which ended April 24, 2015.
"We are not satisfied with our fourth-quarter results and are taking concrete action to transition NetApp for the next phase of growth," said Chairman and CEO Tom Georgens.
Analysts at Summit Research and Needham & Co. lowered their ratings of the stock to hold from buy after the company said it will reduce its workforce by roughly 500 employees. J.P. Morgan downgraded to stock to underweight from neutral on the heels of weak revenue.
The Sunnyvale, Calif.-based company said its first-quarter fiscal 2016 net revenue are expected to range from $1.275 billion to $1.375 billion. The company is also expecting a GAAP loss of 11 cents to 6 cents per share. Its 2016 fiscal first-quarter dividend jumped 9%, the company said in its earnings release.
Shares closed at $31.75 per share and have lost 23% since the start of the year. Over the past 12 months, the stock dipped almost 6%.
"We rate NETAPP INC (NTAP) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: NTAP Ratings Report